About this tool
Why use this tool
Closing costs in the US are the fees paid at settlement on top of the property price, and they routinely surprise first-time buyers. Anticipating them precisely helps size your down payment, avoid last-minute financing gaps and negotiate seller concessions. Nationally, closing costs average 2–5 % of the loan amount (ClosingCorp), varying widely by state — from under 1 % in Missouri to nearly 6 % in New York or Delaware.
How it works
Closing costs include: lender fees (origination 0.5–1 %, appraisal $500–$700, credit report), third-party fees (title insurance ~0.5 %, escrow, survey), government fees (recording, transfer tax — up to 2 % in some states), and prepaid items (homeowners insurance first year, property tax reserves, mortgage interest to end of month). Government-backed loans (FHA, VA) have additional funding fees but limit certain junk fees.
Real example
Buying a $400,000 home in Texas with 20 % down and a $320,000 mortgage: closing costs estimated at 3 % of price = $12,000, plus prepaids of about $4,000, for a total cash-to-close of $96,000 (including down payment). In New York for the same home, transfer taxes and mortgage recording tax push closing costs above $20,000.
Practical tips
Get a Loan Estimate from at least 3 lenders within 3 days of application (TILA-RESPA requires it) — compare the "Total Loan Costs" section carefully. Negotiate seller concessions — up to 6 % for conventional loans with 10 %+ down. Ask about lender credits (higher rate in exchange for lower closing costs) if you plan to move within 5 years. Shop title insurance separately in states where it's allowed (survey NAIC list). Check state/local programs: many first-time buyer programs cover 2–5 % of closing costs (Chenoa Fund, state HFAs).
Disclaimer
This estimate is a starting point only. Actual closing costs depend on the state, county, loan type, lender and property specifics. The Loan Estimate (LE) and Closing Disclosure (CD) issued by your lender are the binding documents. Consult a licensed real estate attorney in attorney-required states (NY, MA, GA, SC, etc.). This tool is not legal or financial advice.