Home Closing Costs Calculator
Estimate itemized buyer and seller closing fees, lender origination, title insurance, escrow impounds, and total cash to close.
Transaction & Closing Details
Itemized Buyer Closing StatementALTA / TRID Estimate
- Lender Origination & Processing
- $3,200
- Appraisal, Inspection & Credit Report
- $1,200
- Title Insurance & Escrow Settlement
- $2,600
- Deed Recording & Transfer Taxes
- $780
- Prepaid Taxes, Insurance & Escrow Impounds
- $4,600
- Gross Buyer Closing Costs
- $12,380
Buyer & Seller Closing Cost Formula
Cash to Close = Down Payment + (Lender Origination + Appraisal + Title/Escrow + Transfer Tax + Prepaid Impounds − Seller Concessions); Seller Net = Sale Price − (Commissions + Transfer Tax + Credits)- Lender Origination & Underwriting: Typically 0.5% to 1.5% of the financed loan amount for processing and discount points.
- Appraisal & Inspection: Independent licensed valuation ($550-$700), home inspection ($450-$550), and credit/flood reports.
- Title Insurance & Escrow: Lender’s and Owner’s title policies protecting against liens plus settlement attorney/escrow fees (~0.65% of price).
- Prepaids & Impounds: Upfront property tax reserves (3-6 months), 12-month hazard insurance binder, and per-diem mortgage interest.
- Seller Closing Costs: Real estate agent commissions (typically 5%–6%) plus county transfer taxes and negotiated buyer credits.
Step-by-Step Worked Example
Calculation Steps:
- Lender Origination & Processing = $320,000 × 1.0% = $3,200.00
- Appraisal, Inspection & Credit = $1,200.00
- Title Insurance & Settlement Fee = $2,600.00
- Deed Recording & Buyer Transfer Tax = $780.00
- Prepaid Escrow Impounds (Taxes & Insurance) = $4,600.00
- Total Buyer Closing Costs = $12,380.00 (3.10% of purchase price)
- Total Cash to Close = $80,000 (Down Payment) + $12,380 (Closing) = $92,380.00
How to Use This Calculator
- 1Enter the home purchase or sale price in your active currency.
- 2Input the down payment percentage (enter 100% for all-cash purchases to zero out lender fees).
- 3Adjust lender origination points and local county/state transfer tax rates.
- 4Optionally add any negotiated seller concessions (credits toward buyer closing costs).
- 5Review the itemized buyer Closing Disclosure estimate alongside seller net proceeds.
Assumptions & Limitations
- Assumes standard TRID Closing Disclosure impounds of 4-6 months property tax and 14 months homeowner insurance.
- All-cash buyers (100% down) avoid lender origination, mortgage underwriting, and lender title policy charges.
- Seller net proceeds represent gross equity before paying off any existing mortgage balance.
Frequently Asked Questions
How much are average closing costs for a buyer?
Home buyers in the United States typically pay between 2% and 5% of the purchase price in closing costs. On a $400,000 home, buyer closing fees average $10,000 to $14,000 on top of the down payment.
Can closing costs be rolled into the mortgage?
For standard purchase mortgages, closing costs generally must be paid out-of-pocket at settlement, unless you negotiate a "seller credit" (seller concession) or accept a higher mortgage interest rate in exchange for "lender credits."
Who pays more in closing costs: the buyer or the seller?
The seller almost always pays more in dollar terms—typically 6% to 8% of the sale price—because the seller traditionally pays real estate brokerage commissions and the majority of county transfer taxes.
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