Closing Costs Calculator — 2026

Understanding Your Closing Costs

What Are Closing Costs?

Closing costs are the fees and expenses you pay when finalizing a mortgage — beyond the down payment. They cover everything from the lender's work to third-party verifications and government filings. On a typical $350,000 home, closing costs run between $7,000 and $17,500, or 2% to 5% of the home price.

The 5 Categories of Closing Costs

1. Lender Fees — Origination (usually 0.5–1% of the loan), underwriting, processing, credit reports, and flood certification. These are what the lender charges for creating and approving the loan.
2. Third-Party Services — Appraisal ($400–600), title insurance ($500–1,500), settlement/escrow ($400–700), and optional items like attorney review and survey. Many of these are "services you can shop for" — meaning you can compare providers to save money.
3. Government Fees — Recording fees ($50–250) and transfer taxes (varies widely by state and locality — some states like Texas and Arizona have none, while others like Pennsylvania can exceed 1% of the home price).
4. Prepaid Items — Homeowners insurance (first year), property tax reserves (2–6 months), prepaid daily interest (from closing to month-end), and a 2-month escrow cushion. These are not "costs" in the strict sense — they're your own money set aside for bills that will come due.
5. Discount Points — An optional upfront payment to permanently lower your mortgage interest rate. One point equals 1% of the loan amount and typically reduces your rate by about 0.25 percentage points. This can save thousands over the life of the loan if you stay long enough.

Loan Type Differences

Different loan programs add their own upfront fees:

• Conventional — No additional government fees beyond the standard closing costs listed above. However, PMI (Private Mortgage Insurance) is required if your down payment is under 20%, though it's paid monthly, not upfront.
• FHA — Adds an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the loan amount. This is typically rolled into the loan balance rather than paid in cash, but it increases your total borrowing.
• VA — Charges a VA Funding Fee ranging from 1.4% to 3.6% of the loan amount, depending on your service history and down payment. First-time use with 0% down has a 2.15% fee (exempt for veterans with service-connected disabilities).
• USDA — Includes a 1.0% upfront guarantee fee, which can be rolled into the loan. Also charges a 0.35% annual fee.

How to Lower Your Closing Costs

• Shop multiple lenders — Get Loan Estimates from 3–5 lenders and compare origination fees, interest rates, and total closing costs side by side. Studies show this saves an average of $3,000.
• Negotiate lender fees — Origination, underwriting, and processing fees are often negotiable. Ask the lender to waive or reduce them, especially if you have strong credit.
• Compare third-party providers — Items marked "services you can shop for" on the Loan Estimate — like title insurance and settlement — can be sourced from different companies at different prices.
• Ask for seller concessions — In many markets, sellers can contribute toward your closing costs (often up to 3% for conventional loans, 6% for FHA).
• Consider a no-closing-cost mortgage — The lender covers the costs but charges a higher interest rate (typically 0.25–0.50% above market). Worth it if you'll sell or refinance within 3–5 years.
• Close near the end of the month — This reduces prepaid daily interest, since you only pay interest for the days between closing and the end of the month.

Cash to Close — What You Actually Need

Your "cash to close" is the total amount you need to bring to the closing table. It equals:

Down Payment + Total Closing Costs − Any Credits (seller concessions, lender credits, earnest money deposit)

Our calculator shows this total at the top of the results panel. It's the number that matters most when you're budgeting for a home purchase.