Mortgage closing cost calculator
Use our closing cost calculator to estimate your mortgage closing costs
When calculating mortgage closing costs, you want to be sure you have an accurate estimate of how much money will be needed. Nobody likes to be caught off-guard, so having a closing cost estimate in advance is a good way to stay prepared. Use our handy closing cost calculator to understand how fees, points and property taxes affect your total closing costs.
Cash Needed to Close Calculator
What’s included in mortgage closing costs?
Closing costs (also referred to as “settlement costs”) are expenses that the buyer pays in connection with purchasing a home. Expenses can include an origination fee or points, a processing fee, an underwriting fee, an appraisal fee, property taxes, homeowner’s insurance, settlement agent fees, title fees and recording fees.
Defining how closing costs are calculated can be tricky because they are not one specific line item, but instead a collection of variable expenses identified for different reasons. These can include:
- The state or county in which you are buying a house
- The lender you choose and their requirements
- The type of mortgage you are getting
- The real estate agents you are using to purchase your house
Most realtors and financial advisors tell you that closing costs will typically be in the range of 2-5% of the home value. This may seem reasonable enough, but when you are in the process of purchasing, that range can mean a difference of thousands of dollars. Your lender is required to provide a Loan Estimate within 3 days of submitting your loan application, which will give you a good idea of your expected mortgage closing cost estimate. Having a closing cost estimate up front will give you more time to have the proper amount of funds available.
To use our mortgage closing calculator to estimate closing costs, have the below items available:
- Sale price of the home–the purchase or listing price of the house you want to buy
- Down payment–the up-front amount you are planning to put down on the purchase of the home. It can be entered as a dollar amount or a percentage. Note that any percentages over 99% will automatically be calculated as a dollar amount.
- Estimated interest rate–the rate that you expect to receive on your financing
- Points charged–the origination fees and/or discount points charged by your lender. The standard is a 1% origination fee and zero points. If you do not know this information, assume a 1% origination fee.
- Property state–the state in which the house you are buying is located