Calculator Inputs
Example Data Table
| Scenario | Transaction | Property Value | Loan Amount | Total Closing Costs | Cash to Close |
|---|---|---|---|---|---|
| Base Purchase | Purchase | $350,000 | $280,000 | $14,707.33 | $82,207.33 |
| Credit Applied | Purchase | $350,000 | $280,000 | $14,707.33 | $79,707.33 |
| Refinance Case | Refinance | $350,000 | $280,000 | $14,707.33 | $12,207.33 |
Formula Used
Origination Fee = Loan Amount × Origination Fee %
Discount Points = Loan Amount × Points %
Transfer Tax = Property Price × Transfer Tax Rate %
Tax Escrow = (Annual Property Tax ÷ 12) × Tax Escrow Months
Insurance Escrow = (Annual Insurance ÷ 12) × Insurance Escrow Months
Prepaid Interest = (Loan Amount × Interest Rate ÷ 365) × Prepaid Interest Days
Total Closing Costs = Loan Charges + Third-Party Fees + Title & Government Fees + Prepaids & Escrows + Miscellaneous Fee
Cash to Close = Down Payment + Total Closing Costs − Seller or Lender Credit
How to Use This Calculator
- Select whether the estimate is for a purchase or refinance transaction.
- Enter the property price or appraised value and the desired loan amount.
- Fill in lender fees, third-party charges, title items, taxes, and reserves.
- Add prepaid interest days and any seller or lender credit expected.
- Press the calculate button to see totals above the form.
- Review the itemized summary, waterfall chart, and cash-to-close figure.
- Download the calculation as CSV or PDF for sharing or recordkeeping.
Frequently Asked Questions
1. What are settlement costs?
Settlement costs are the fees and prepaid items due when a mortgage closes. They often include lender charges, appraisal, title work, taxes, recording fees, escrows, and prepaid interest.
2. Is cash to close the same as closing costs?
No. Closing costs are the charges themselves. Cash to close also includes the down payment on purchases, then subtracts seller or lender credits that reduce the amount you bring.
3. Why are prepaid taxes and insurance included?
Lenders often collect initial escrow reserves to make future tax and insurance payments on time. These amounts are not always fees, but they still raise the cash needed at closing.
4. What do discount points do?
Discount points are optional upfront charges paid to reduce the mortgage rate. One point usually equals one percent of the loan amount, though actual pricing varies by lender and market.
5. Can this calculator be used for refinancing?
Yes. Choose refinance and the calculator removes the purchase down payment from cash to close. The remaining estimate focuses on lender fees, title costs, escrows, and credits.
6. Why might my final closing disclosure differ?
Actual settlement figures can change because of rate lock timing, prorated taxes, insurance updates, negotiated seller credits, local recording charges, and lender-specific underwriting or compliance fees.
7. What is a reasonable closing cost percentage?
Many purchase transactions fall within roughly two to five percent of the property price, but taxes, transfer charges, escrows, and points can push the percentage materially higher.
8. How should I use the chart?
The waterfall chart shows which buckets add to settlement needs and which credits reduce them. It helps you spot the biggest cost drivers before choosing a lender or loan structure.