How to estimate closing costs
Add the main fee groups before making an offer.
1
Enter the purchase price
Use the accepted offer price and down payment.
2
Estimate lender fees
Origination is usually a percentage of the loan amount.
3
Add local taxes and services
Check the transfer tax rate and typical third-party fees for the area.
What does this tool do?
Closing costs bundle lender origination, third-party services and transfer taxes. They are usually 2% to 5% of the purchase price, and the split varies by location and lender.
The Formula
Closing costs = Loan × Origination % + Third-party fees + Price × Transfer tax %Frequently Asked Questions
Can closing costs be financed?
Sometimes they are rolled into the loan or covered by seller concessions. Either way the cost is real and raises the amount borrowed.
Which fees are negotiable?
Origination and some third-party fees can be negotiated. Transfer taxes and recording fees are usually fixed by the jurisdiction.