Precision Utility
Closing Costs
Calculator
Avg Range
2-5%
Loan Types
3
Estimate the total closing costs on your home purchase. Enter your home price, down payment, and loan type below to see a detailed breakdown of origination fees, title costs, prepaid expenses, and the total cash you need at closing.
Purchase Details
Down payment: $70,000
Total Closing Costs
$0
% of Home Price
0.00%
Down Payment
$0
Total Cash Needed at Closing
$0
What are closing costs?
Closing costs are the fees and expenses you pay when finalizing a home purchase, beyond the down payment itself. They cover services like the loan origination, property appraisal, title search, insurance, and government recording fees.
For buyers, closing costs typically range from 2% to 5% of the home's purchase price. On a $350,000 home, that translates to roughly $7,000 to $17,500. The exact amount depends on your loan type, lender, location, and what you negotiate with the seller.
This calculator estimates common buyer-side closing costs including lender fees, title fees, prepaid taxes and insurance, and loan-specific charges like the FHA upfront mortgage insurance premium or VA funding fee.
Buyer costs vs. seller costs
Buyers typically pay loan-related fees (origination, appraisal, credit report), title insurance for the lender, prepaid property taxes and homeowner's insurance, home inspection, and recording fees.
Sellers typically pay real estate agent commissions (5-6% of the sale price), transfer taxes, the owner's title insurance policy, and any concessions agreed upon during negotiations.
Some costs are negotiable. In a buyer's market, sellers may agree to cover a portion of the buyer's closing costs to close the deal. FHA loans allow up to 6% in seller concessions, while conventional loans allow 3% to 9% depending on the down payment amount.
Loan-specific fees: FHA and VA
FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount. On a $280,000 loan, that adds $4,900 to your closing costs. This can be financed into the loan balance, but it still increases what you owe.
VA loans charge a funding fee that ranges from 1.25% to 3.3% depending on your down payment and whether it is your first VA loan. This calculator uses 2.15% as a standard estimate for first-time use with no down payment. Disabled veterans and surviving spouses are typically exempt from the funding fee.
Conventional loans do not have upfront government fees, but may require private mortgage insurance (PMI) if your down payment is less than 20%. PMI is a recurring monthly cost rather than an upfront closing cost.
How to reduce your closing costs
Shop around. Get Loan Estimates from at least three lenders and compare origination fees, discount points, and third-party charges. Even small differences in fees can add up to hundreds or thousands of dollars.
Negotiate seller concessions. Ask the seller to cover a percentage of your closing costs. This is especially effective in buyer's markets or when the property has been listed for a while.
Ask about lender credits. Some lenders offer to cover part of your closing costs in exchange for a slightly higher interest rate. This can make sense if you plan to sell or refinance within a few years.
Look for first-time buyer programs. Many states and municipalities offer grants or assistance programs that help cover closing costs for qualifying buyers.
Frequently asked questions
What are average closing costs for a home buyer?
Average closing costs typically range from 2% to 5% of the purchase price. On a $350,000 home, expect to pay roughly $7,000 to $17,500. The exact amount depends on your loan type, location, lender fees, and any negotiated seller concessions.
What closing costs does the buyer pay vs. the seller?
Buyers pay loan origination fees, appraisal, home inspection, title insurance (lender's policy), prepaid taxes and insurance, and recording fees. Sellers pay real estate commissions, transfer taxes, and the owner's title insurance policy. Some costs are negotiable between parties.
Can I negotiate closing costs?
Yes. You can negotiate seller concessions, shop around for title and inspection services, compare lender fees across multiple Loan Estimates, and ask about lender credits. FHA loans allow up to 6% in seller concessions, while conventional loans allow 3% to 9% depending on your down payment.
Can I roll closing costs into my loan?
In some cases, yes. With a no-closing-cost mortgage, the lender covers your fees in exchange for a higher interest rate. FHA and VA loans allow their upfront fees to be financed into the loan balance. Rolling costs into your loan reduces cash needed at closing but increases your monthly payment and total interest.
What are lender credits?
Lender credits are when the lender pays some or all of your closing costs in exchange for a higher interest rate. This reduces your upfront cash requirement but increases your monthly payment. It makes sense if you plan to sell or refinance within a few years before the higher rate outweighs the savings.
What is a no-closing-cost mortgage?
A no-closing-cost mortgage does not eliminate fees. Instead, the lender covers them upfront and charges a higher interest rate, typically 0.125% to 0.375% more. Over 30 years, this can cost significantly more than paying closing costs out of pocket. It is best for buyers short on cash or planning to move or refinance soon.