Closing Costs When Buying a Home

Closing costs are the one-time fees you pay to finance and transfer a home. They are the main reason buying takes a few years to beat renting, and they are also the number a seller credit can knock down the fastest.

The Estimate This Calculator Uses

Rather than guessing a single flat percentage, we scale the estimate to the purchase price, because fixed fees weigh more heavily on smaller loans:

• 3% up to $250,000
• 2.75% up to $350,000
• 2.6% up to $450,000
• 2.5% up to $550,000
• 2.35% above $550,000

On the default $400,000 scenario that is $10,400 in estimated closing costs. With a $10,000 seller credit, you bring $400, and total cash to close lands at $80,400 including the $80,000 down payment.

What the Fees Actually Cover

• Lender charges: origination, underwriting, discount points.
• Third-party reports: appraisal, credit, flood certification.
• Title and settlement: title insurance, escrow, closing fees.
• Government: recording fees and transfer taxes.
• Prepaids and escrow: prepaid interest, plus deposits for property taxes and homeowners insurance.

Two Ways to Lower Your Cash to Close

1. Seller-paid closing costs. Negotiated in the contract, within program limits. It reduces your cash out of pocket without reducing the home's equity, which is why it pulls your break-even year forward.
2. Down payment assistance. Program-specific, and often stackable with a seller credit.

Estimates only. This is not an itemized quote, a Loan Estimate, or an offer or commitment to lend. Your official figures come from a Loan Estimate issued after a full application. Equal Housing Opportunity.