How much are closing costs for a buyer?

Buyers typically pay 2–5% of the loan amount in closing costs, according to the CFPB. On a $300,000 loan, that is $6,000–$15,000. The biggest line items are the origination fee (0.5–1% of loan), title insurance (0.3–0.8% of purchase price), prepaid interest, and escrow deposits for taxes and insurance. Costs vary significantly by state — for example, New York has much higher transfer taxes than Texas.

How much are closing costs for a seller?

Sellers typically pay 6–10% of the sale price. The largest cost is the real estate agent commission, traditionally 5–6% split between buyer and seller agents (though this is changing post-NAR settlement). Other seller costs include seller-paid title insurance (in some states), transfer taxes, and any agreed-upon concessions or credits to the buyer.

Can closing costs be rolled into the mortgage?

In most cases, no — closing costs must be paid at settlement. However, some loan programs allow "no-closing-cost" mortgages where the lender rolls costs into the interest rate (you pay slightly more each month instead of upfront). You can also negotiate for the seller to pay some or all of your closing costs as a seller concession, which is common in buyer-friendly markets.

What is a Loan Estimate and when do I get it?

A Loan Estimate is a standardized 3-page form your lender is required to provide within 3 business days of receiving your application. It lists all estimated closing costs, loan terms, and projected monthly payments. Use it to compare lenders. You will receive a Closing Disclosure (the final actual costs) at least 3 business days before closing — compare it carefully to the Loan Estimate and ask about any increases.

What is transfer tax and who pays it?

Transfer tax (also called deed tax or conveyance tax) is a government fee charged when property ownership transfers. Rates vary dramatically: some states charge 0.01%, others charge 2–4%. In most states it is paid by the seller, but in others it is split or paid by the buyer. New York City, for example, charges both a city transfer tax (1–1.425%) and a state transfer tax (0.4%).

What are prepaid closing costs?

Prepaid closing costs are expenses you pay at closing for things you will use going forward: prepaid interest (from closing date to month-end), homeowner's insurance premium (first year), and escrow deposits (2–3 months of property taxes and insurance). These are not really "costs" — they are money you would pay anyway — but they require cash upfront at closing and are often overlooked in budgeting.

Can I negotiate closing costs?

Yes. You can shop for lower title and settlement fees (get multiple quotes from title companies), negotiate the origination fee with your lender, and ask the seller to pay part of your closing costs. Some fees are fixed by government (recording fees, transfer taxes), but lender and third-party fees are often negotiable. Using the same settlement attorney or title company as prior buyers in your area can sometimes save money.

Closing Costs Calculator

The Closing Costs Calculator estimates the fees and expenses you will pay at settlement when buying or selling a home. Buyers typically pay 2–5% of the loan amount in closing costs; sellers typically pay 6–10% of the sale price (dominated by agent commissions). This tool breaks down each major cost category so you can budget accurately and avoid surprises at the closing table. Switch between Buyer Costs and Seller Costs using the mode selector.

Mode

Purchase Price

Down Payment

Origination Fee

% of loan amount

Annual Mortgage Rate

Used for prepaid interest only

Prepaid Interest Days

days

Days from closing to month-end

Title Insurance

% of purchase price

Transfer Tax

Varies by state; 0 if seller pays

Appraisal Fee

Home Inspection

Title Search

Recording Fees

Total Buyer Closing Costs

$7,745.55

As % of Purchase Price

1.94%

Origination Fee

$3,200.00

Title Insurance

$2,000.00

Prepaid Interest

$920.55

Loan Amount

$320,000.00

How to use this calculator

1
Enter the purchase price
The agreed sale price of the home. This is the basis for percentage-based fees like transfer tax and title insurance.
2
Enter your down payment
The cash you are contributing upfront. The loan amount is automatically calculated as purchase price minus down payment.
3
Select Buyer Costs or Seller Costs
Switch between modes to see costs relevant to your side of the transaction. Buyers face lender fees, title, and prepaid interest. Sellers primarily face agent commission and transfer tax.
4
Adjust line-item rates
Default values reflect national averages per CFPB guidelines. Adjust origination fee %, title insurance %, transfer tax rate, and fixed fees to match your specific market and lender.
5
Review total and percentage
The calculator shows total closing costs and what percentage they represent of the purchase price, helping you verify you are within typical ranges.

Formula

— Buyer Costs —
Loan Amount = Purchase Price − Down Payment
Origination Fee = Loan Amount × Origination Fee %
Title Insurance (buyer) = Purchase Price × Title Insurance %
Transfer Tax = Purchase Price × Transfer Tax %
Prepaid Interest = Loan Amount × (Annual Rate / 365) × Prepaid Days
Total Buyer Costs = Origination Fee + Appraisal + Title Insurance
  + Title Search + Recording Fees + Transfer Tax
  + Home Inspection + Prepaid Interest

— Seller Costs —
Agent Commission = Purchase Price × Commission %
Title Insurance (seller) = Purchase Price × Seller Title %
Seller Transfer Tax = Purchase Price × Transfer Tax %
Total Seller Costs = Commission + Title Insurance
  + Transfer Tax + Other Seller Costs

Buyer costs center on lender fees (origination) and third-party services (title, appraisal, inspection). Prepaid interest covers the days from closing to the end of the month. Seller costs are dominated by agent commission (typically 5–6% split between buyer and seller agents) plus transfer taxes and title. Example: on a $400,000 purchase with 10% down ($360,000 loan) at 7% rate, a 1% origination fee is $3,600; prepaid interest for 15 days is $360,000 × (0.07/365) × 15 = $1,036. Total buyer costs would be approximately $9,000–$13,000 (2.25–3.25% of purchase price).

Worked Example — Buyer

Purchase Price: $400,000 Down Payment: $80,000 (20%) Loan Amount: $320,000 Annual Rate: 7.0% Origination Fee (1%): $3,200 Appraisal Fee: $500 Title Insurance (0.5%):$2,000 Title Search: $200 Recording Fees: $125 Transfer Tax (0.1%): $400 Home Inspection: $400 Prepaid Interest (15 days): $320,000 × (0.07/365) × 15 = $921 Total Buyer Closing Costs: ~$7,746 (1.94% of purchase price) Typical range is 2–5% of purchase price, so this falls at the lower end due to a clean 20% down purchase.

Frequently Asked Questions

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