Home Closing Cost Calculator
Loan type
1 pt = 1% of loan = ~0.25% rate cut
VA: Disabled veteran?
VA: First-time use?
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How to use
- 1 Enter purchase price and loan amount (price minus down payment).
- 2 Select loan type — conventional, FHA (1.75% upfront MIP), VA (funding fee), USDA.
- 3 Select your state to apply correct transfer tax (DE 4% high, TX 0% none).
- 4 Enter discount points if buying down rate (1 point = 1% of loan = ~0.25% rate reduction).
- 5 For VA loans: indicate first-time use and disabled veteran status (disabled vets fully exempt from funding fee). Click Calculate to see itemized closing costs and total cash needed.
About Home Closing Cost Calculator
FAQ
Q How much are closing costs on a $400,000 home?
Typically 2-5% of loan amount = $8,000-$20,000 on a $320K loan (80% LTV). Biggest variable is state transfer tax: Delaware would add $16,000 (4%), Texas adds $0. Plus title insurance $1,500-3,000, lender origination $3,200, escrow $800, prepaid tax/insurance $4,000-6,000.
Q Who pays buyer closing costs?
Customarily the buyer, but sellers can contribute "concessions" up to 3% (FHA loans), 4% (VA), or 6% (conventional with 10%+ down) toward buyer's closing costs. Common in negotiations — buyer offers higher price, seller credits closing costs back. Lender also offers credits in exchange for a higher rate.
Q Can I roll closing costs into my mortgage?
Sometimes. FHA upfront MIP and VA funding fee are routinely financed. "No-closing-cost mortgages" roll all fees into the loan principal — you pay no cash upfront but pay interest on the rolled amount over 30 years. Math depends on stay length: short holders win with rolled costs, long holders win with paid-upfront.
Q What is title insurance?
Two policies: (1) lender's title insurance (required, 0.1-0.3% of loan, protects lender from title defects) and (2) owner's title insurance (optional but strongly recommended, 0.5-1% of price, protects you from forged deeds, undisclosed liens, boundary disputes). One-time premium at closing; coverage lasts as long as you own the home.
Q What is the FHA upfront MIP?
1.75% of the loan amount, financed into the mortgage at closing (so a $300K FHA loan adds $5,250 to the loan balance). Plus annual MIP 0.55% paid monthly. FHA MIP is for the life of the loan if down <10%; for 10%+ down, removable after 11 years. Compare to conventional PMI which is removable at 80% LTV.
Q Why does Delaware have such a high transfer tax?
Delaware combines state (2%) + county/municipality (typically 1.5-2%) for total often around 4%. The highest in the US. Why: Delaware has no state sales tax and no individual income tax for retirees, and transfer tax helps fund state services. Buyers in Delaware should budget for this substantial cost.
Q How are discount points worth buying?
1 point = 1% of loan = ~0.25% rate reduction (varies by lender and market). Break-even calculation: divide cost by monthly savings to get years to break even. Typically 4-7 years. Worth it if you'll stay 7+ years; not worth it for short holders. Watch for tax deduction — points are deductible like mortgage interest if itemizing.
Q When do I see the actual closing costs?
Federal regulations require Loan Estimate (LE) within 3 business days of application — itemizes every fee. Closing Disclosure (CD) at least 3 business days before closing. Compare LE to CD; total fees can change up to 10% on most items, while transfer tax/government fees can change without limit. Question any unexpected charges.
Official resources
CFPB — Closing Disclosure
Authoritative US Consumer Financial Protection Bureau reference on the Closing Disclosure form.
CFPB — Loan Estimate
CFPB resource on the Loan Estimate form required within 3 days of mortgage application.
HUD — FHA MIP and VA Funding Fee
HUD reference on FHA upfront MIP and VA funding fee structures.
Tax Foundation — State Transfer Tax
Authoritative US comparison of state-by-state real estate transfer tax rates.