This tool estimates the closing costs you may pay to finalize a mortgage by summing the common line items and showing them as a percentage of your loan amount. Closing costs are the fees and prepaid expenses due at settlement, separate from your down payment. Seeing both the dollar total and the percentage helps you sanity-check a lender's estimate against typical ranges.
Closing costs generally run about 2 to 5 percent of the loan amount, though the exact figure depends on your location, loan type, and lender. The tool adds up line items you enter, such as loan origination fees, appraisal, title services, government recording and transfer taxes, and prepaids like homeowners insurance and property tax escrow. It then divides that total by your loan amount to show the percentage-of-loan framing, so you can compare your estimate to the usual band.
Suppose you are borrowing $250,000. You enter $2,500 for loan origination, $500 for the appraisal, $1,500 for title services, $2,000 for recording and transfer taxes, and $2,000 for prepaid insurance and tax escrow. Adding those gives $8,500 in total closing costs. Dividing $8,500 by the $250,000 loan gives 0.034, or about 3.4 percent, which sits inside the typical 2 to 5 percent range. If your line items pushed the total toward $12,500, that would be 5 percent, near the top of the usual band.
Enter your loan amount, then fill in each line item you expect: origination or points, appraisal, title and settlement fees, recording and transfer taxes, and prepaid escrow items. The calculator totals them and reports the sum as both a dollar figure and a percentage of the loan, so you can spot line items that look unusually high.
Closing costs vary widely by state and even by county, since transfer taxes and title practices differ. Some fees are negotiable, and lender credits or seller concessions can reduce what you pay at the table. Prepaids depend on the timing of your closing and your insurance and tax bills. This estimate cannot replace the official Loan Estimate and Closing Disclosure your lender provides, which are the documents that legally bind the numbers.
Are closing costs the same as the down payment? No. The down payment reduces the amount you borrow, while closing costs are fees and prepaids for processing and recording the loan. Both are due around settlement.
Can I negotiate closing costs? Some line items, like certain lender fees, may be negotiable, and you can shop for services such as title insurance. Government taxes are generally fixed.
What are prepaids? Prepaids are amounts collected in advance, such as the first insurance premium and an escrow cushion for property taxes, so your account starts funded.
Where do I find the official numbers? Your lender must provide a Loan Estimate early in the process and a Closing Disclosure before settlement. Compare them closely, as the CFPB recommends.
Disclaimer: This calculator provides educational estimates using standard formulas, not personalized financial advice. Lending terms, interest rates, and your individual circumstances vary. Consult a licensed mortgage, financial, or tax professional before making decisions.
Sources: Consumer Financial Protection Bureau. What fees are paid at mortgage closing, and who pays them