| Scenario | Purchase Price | Loan Amount | Rate | Estimated Cash to Close |
|---|---|---|---|---|
| Conventional, moderate escrows | $350,000 | $280,000 | 6.75% | $79,000 – $86,000 |
| Higher points, lower rate strategy | $350,000 | $280,000 | 6.25% | $81,000 – $88,000 |
| Lower escrows, minimal optional services | $350,000 | $280,000 | 6.75% | $77,000 – $83,000 |
- Origination fee = Loan Amount × (Origination % ÷ 100)
- Discount points = Loan Amount × (Points % ÷ 100)
- Transfer tax = Purchase Price × (Transfer Tax % ÷ 100)
- Daily interest = (Loan Amount × Rate % ÷ 100) ÷ 365
- Prepaid interest = Daily Interest × Prepaid Days
- Insurance escrow = (Annual Insurance ÷ 12) × Insurance Escrow Months
- Tax escrow = (Annual Taxes ÷ 12) × Tax Escrow Months
- Closing costs (before credits) = Lender + Third‑party + Government + Prepaids + Buffer (+ HOA if included)
- Cash to close = Down Payment + Closing Costs (before credits) − (Seller Credits + Earnest Money)
- Enter your purchase price and loan amount. Leave down payment blank to auto-calculate.
- Copy fees from your lender’s estimate into the matching fields (origination, points, underwriting, and processing).
- Toggle optional services such as owner title policy, survey, attorney, inspection, or HOA items.
- Set escrow months and annual insurance/taxes to approximate your upfront escrow deposit.
- Add seller credits and earnest money to see how they reduce your required cash.
- Press Calculate. The results appear above the form. Use CSV/PDF buttons to export your breakdown.
Article
Closing cost range and structure
Closing costs often land between 2% and 5% of the purchase price, yet the drivers differ by lender and location. This calculator groups costs into lender fees, third‑party services, government charges, and prepaids so you can trace every dollar. Use the category totals to spot quick wins: percent-based items scale with loan size, while flat charges reveal which provider is simply more expensive. Review totals by category to understand where each estimate can shift today.
Comparing lender charges with precision
Lender fees are the easiest to compare across quotes because they reflect pricing and underwriting policy. Origination and points use the loan amount, so 1.00% on a $280,000 loan equals $2,800. A 0.50% point adds $1,400. Processing, underwriting, and credit report fees are flatter and often vary by $200–$900, making them strong negotiation targets. Use the itemized view to mirror your lender worksheet line by line.
Title, settlement, and optional services
Title and settlement costs protect ownership and coordinate the closing process. Lender title coverage is typically required; owner coverage may be optional but can reduce long‑term risk. Appraisals are common for purchase loans, while inspections help you budget repairs. Surveys and attorney services depend on state rules and property complexity. Toggle each item to match your contract so the cash-to-close estimate stays realistic. Pricing can differ by county, insurer, and closing date, so update promptly.
Taxes, recording, and local variability
Government charges are largely location-driven and rarely negotiable. Recording fees can be modest or several hundred dollars depending on document counts and local schedules. Transfer taxes may be zero, a flat amount, or exceed 1% in higher-tax jurisdictions. Enter the local transfer rate and keep a small buffer for municipality add-ons. The goal is not perfection, but preventing last‑minute funding surprises. Check your locality’s published rates before signing final disclosures and wiring funds.
Prepaids, escrows, and cash planning
Prepaids are not “fees,” but they require cash at closing. Prepaid interest depends on the days between closing and your first payment; at 6.75% on $280,000, daily interest is about $51.78, so 15 days is roughly $777. Escrows commonly collect two months of insurance and three months of taxes. Credits and earnest money reduce funds due and improve liquidity. Adjust escrow months for lender cushions and seasonal tax or premium cycles.
1) What is the difference between closing costs and cash to close?
Closing costs are fees and prepaids tied to the loan and transaction. Cash to close includes your down payment, adds closing costs, then subtracts credits and deposits already paid.
2) Are discount points always worth paying?
Points can lower your interest rate, but the value depends on how long you keep the loan. Compare the upfront point cost against the monthly payment savings to find a breakeven period.
3) Why can prepaids feel so high compared with fees?
Prepaids fund future bills like interest, insurance, and taxes. They are not lender profit, but they still require cash at closing, especially when escrow months and tax timing are high.
4) Which items are most negotiable?
Lender charges such as origination, processing, and underwriting can vary widely by provider. Title and settlement pricing may also differ by company, while government fees and transfer taxes are usually fixed.
5) How do seller credits and earnest money affect my total?
Seller credits reduce allowable costs on your settlement statement, lowering funds you bring. Earnest money is typically applied at closing as money already paid, reducing the remaining balance due.
6) How accurate should I expect this estimate to be?
Accuracy depends on how closely your inputs match the official loan estimate and local fees. Use the buffer for small items, then replace placeholders with real figures as disclosures update.