How this calculator works
The estimate adds the down payment to buyer-paid lender fees, third-party services, and prepaid taxes or insurance, then subtracts seller or lender credits. The result is an estimated amount of cash needed at closing—not a quote.
What closing costs include
Lender charges can include origination, underwriting, processing, and points. Third-party costs often include appraisal, title, settlement, recording, and inspection-related services. Prepaids fund items such as homeowners insurance, property taxes, and initial escrow reserves.
Real-world example
On a $400,000 purchase with $80,000 down, $10,000 in fees, $4,000 of estimated prepaids, and a $3,000 credit, estimated cash to close is $91,000. Actual timing and local charges can change that amount.
Common mistakes
- Treating the down payment as the entire cash requirement.
- Forgetting prepaid taxes, insurance, and escrow funding.
- Counting credits that the loan program does not permit.
- Using an online estimate instead of the lender's disclosures.
When to use this calculator
Use it while setting a home-buying budget or comparing offers. Replace estimates with figures from the Loan Estimate and final Closing Disclosure as soon as they are available.
FAQ
How much are closing costs?
Buyer closing costs often vary by location, loan, property, and prepaid requirements. Use an actual Loan Estimate for a reliable transaction-specific figure.
Are closing costs part of the down payment?
No. The down payment reduces the amount borrowed; closing costs pay for financing, settlement services, and prepaid items.
Can seller credits reduce cash to close?
Yes, when permitted by the loan program and contract. Credits generally cannot exceed eligible closing costs.