Mortgages
Closing Cost Calculator
Closing costs run 2–5% of the loan and land as a lump sum the week you buy. They split three ways: lender charges you can shop, third-party services you mostly cannot, and prepaids — property tax and insurance paid early, which is your own money rather than a fee.
Optional prepaid interest to buy down the rate.
Appraisal, credit report, underwriting.
Title insurance plus the closing agent, as a share of price.
Interest from closing to month-end.
Estimated closing costs
$11,755
3.7% of the loan — the usual range is 2 to 5%.
The prepaids are not really a cost — that money funds your escrow account and pays your own tax and insurance. When comparing lenders, focus on the lender charges, since those are the fees you actually control.
- Total cash to close
- $91,755
- Lender charges
- $4,700
- Third-party services
- $3,200
- Prepaids and escrows
- $3,855
- Discount points
- $0
- Prepaid interest
- $855
Down payment plus closing costs — the whole cheque.
The shoppable part — compare loan estimates.
Your own money paid early, not a fee.
Where the money goes
| Item | Amount |
|---|---|
| Discount points | $0 |
| Origination | $3,200 |
| Other lender fees | $1,500 |
| Title and settlement | $2,000 |
| Recording and other | $1,200 |
| Prepaid interest | $855 |
| Property tax escrow | $1,200 |
| Insurance escrow | $1,800 |
How this calculator works
Points and origination are percentages of the loan; title is a percentage of the price. Prepaid interest is loan × rate ÷ 365 × days from closing to month-end. Tax and insurance escrows are the annual figure ÷ 12 × the months collected. Cash to close adds the down payment to the total.
Figures are estimates — actual fees come from the Loan Estimate your lender must provide within three business days of applying, and the Closing Disclosure three days before closing. Transfer taxes, HOA transfer fees, and owner's versus lender's title policies vary widely by state and are folded into the flat fields here rather than itemised.
Try an example
Frequently asked questions
How much are closing costs?
Typically 2–5% of the loan amount, so $6,000–$15,000 on a $300,000 loan. The spread depends mostly on points, the origination fee, and how much property tax and insurance the lender requires you to prepay into escrow at closing.
Which closing costs can I negotiate?
Lender charges — origination, underwriting, processing — are negotiable and worth shopping between lenders. Third-party services like title insurance and recording are largely fixed. Prepaids are not fees at all; they fund your own escrow, so there is nothing to negotiate there.
Can I roll closing costs into the loan?
Sometimes, through lender credits in exchange for a slightly higher rate, or by adding them to the balance on a refinance. On a purchase you usually pay them in cash. Financing them spreads the cost across the loan and adds interest, which is worth it only when cash is tight.
What are prepaid items?
Property tax, homeowners insurance, and interest from closing to the end of the month, collected upfront. The tax and insurance go into an escrow account the lender manages on your behalf. It feels like a cost because it is due at closing, but it is your money paying your bills.
Do points count as closing costs?
They appear on the closing statement, but a point is prepaid interest that buys a lower rate, not a fee for the transaction. Whether points are worth it is a separate break-even question — see our mortgage points calculator.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.