TOTAL ESTIMATED CLOSING COSTS
$0
Tax and insurance costs not included
0% of home price
Typical range: 2-5% of home price
Can closing costs be negotiated?
Some closing costs are negotiable, others are fixed by law or third parties:
- Negotiable: Origination fees, discount points, application fees, processing fees
- Partially negotiable: Third-party services (choose your own providers when possible)
- Fixed: Government recording fees, transfer taxes, prepaid interest
Tactics to reduce closing costs:
- Compare loan estimates from multiple lenders
- Negotiate lender fees directly
- Ask about "no-cost" loan options (higher rate for lower fees)
- Shop for third-party services independently
Who pays closing costs?
Closing costs are typically split between buyer and seller:
- Buyer pays: Most costs (loan fees, title insurance, appraisal, etc.)
- Seller pays: Real estate commissions, some transfer taxes
- Can be negotiated: Who pays for title insurance, attorney fees, survey
In competitive markets, buyers often pay more to make offers more attractive. In buyer's markets, sellers may cover more costs.
What are discount points?
Discount points are upfront fees paid to the lender to reduce your interest rate:
- Cost: Each point costs 1% of the loan amount
- Benefit: Typically reduces rate by 0.25%
- Break-even: Usually 4-6 years to recoup the cost
Pay points only if:
- You plan to stay in the home longer than the break-even period
- You have the cash available (not borrowing to pay points)
- You've already minimized other costs in your loan package