Total Cash Needed at Closing
$91,055
Down Payment
$80,000
Closing Costs
$11,055
Costs %
2.76%
Closing Costs: 2-5% of Home Price
Includes lender fees, title insurance, taxes, and prepaid items
Total Cash Needed at Closing
$91,055
Down Payment
$80,000
Closing Costs
$11,055
Closing Costs as % of Price
2.76%
Itemized closing costs with percentage of loan
Closing costs typically range from 2-5% of the home price. On a $400,000 home, expect $8,000-$20,000 in closing costs. FHA loans often have higher costs due to upfront mortgage insurance.
Closing costs include: lender fees (origination, underwriting, appraisal), title fees (title insurance, search, escrow), government fees (recording, transfer taxes), and prepaid items (property taxes, insurance, mortgage insurance).
| Fee Category | Typical Range | % of Home Price |
|---|---|---|
| Lender Fees | $2,500–$4,000 | 0.6–1.0% |
| Title Fees | $2,500–$4,000 | 0.6–1.0% |
| Government Fees | $500–$3,000 | 0.2–0.8% |
| Prepaid Items | $3,000–$8,000 | 0.8–2.0% |
Yes, you can negotiate seller concessions. Limits vary by loan type: Conventional allows 3-9% depending on down payment, FHA allows up to 6%, VA allows up to 4% plus reasonable fees.
| Loan Type | Max Seller Concession | Example ($400K Home) |
|---|---|---|
| Conventional (<10% down) | 3% | $12,000 |
| Conventional (10–25% down) | 6% | $24,000 |
| FHA | 6% | $24,000 |
| VA | 4% + fees | $16,000 + fees |
Some closing costs are deductible: mortgage points, property taxes paid at closing, and mortgage interest. Title fees, recording fees, and most other costs are not deductible for a primary residence.
VA and USDA loans allow financing closing costs. FHA allows financing the upfront MIP. Conventional loans require closing costs paid upfront, but you may be able to use a higher interest rate with lender credits.
Prepaid items are costs paid in advance at closing: 1 year homeowner's insurance, 2-6 months property taxes (escrow), mortgage insurance, and daily interest from closing to month-end.
Inputs
Result
Loan = $320,000. Lender fees: origination ($1,600) + underwriting ($750) + appraisal ($500) + credit ($50) = $2,900. Title fees: insurance ($2,000) + search ($400) + escrow ($500) + attorney ($750) = $3,650. Government: recording ($150) + transfer tax ($800) = $950. Prepaids: 3 mo. taxes ($1,200) + 1 yr insurance ($1,500) + 15 days interest ($855) = $3,555. No mortgage insurance at 20% down. Total closing = $11,055 (2.76%).
Inputs
Result
Loan = $285,000. Lender fees: origination ($1,425) + underwriting ($750) + appraisal ($500) + credit ($50) = $2,725. Title: insurance ($1,500) + search ($400) + escrow ($500) + attorney ($750) = $3,150. Government: recording ($150) + transfer ($600) = $750. Prepaids include FHA upfront mortgage insurance ($285,000 × 1.75% = $4,988), plus taxes ($900), insurance ($1,500), and prepaid interest ($761) = $8,149. Total closing = $14,774 (4.92%).
Closing Costs = Lender Fees + Title Fees + Government Fees + Prepaid ItemsSum of all closing cost categories. Typically 2-5% of the home price.
Where:
Lender Fees= Origination (0.5% of loan) + underwriting ($750) + appraisal ($500) + credit report ($50)Title Fees= Title insurance (0.5% of price) + title search ($400) + escrow ($500) + attorney ($750)Government Fees= Recording fee ($150) + transfer tax (0.2% of price)Prepaid Items= 3 months property tax + 1 year insurance + mortgage insurance (if applicable) + 15 days prepaid interestCash Needed = Down Payment + Total Closing CostsThe total amount of cash you need to bring to the closing table.
Where:
Down Payment= Home price × down payment percentageTotal Closing Costs= Sum of all fees and prepaid itemsClosing Cost % = (Total Closing Costs / Home Price) × 100Closing costs expressed as a percentage of the home purchase price.
Where:
Total Closing Costs= Sum of all closing cost categoriesHome Price= Purchase price of the homeClosing costs range from 2–5% of the home’s purchase price, adding $8,000–$20,000 on a $400,000 home. Combined with a 20% down payment ($80,000), total cash needed at closing reaches $88,000–$100,000 — a figure that surprises many first-time buyers. FHA loans carry even higher costs due to the 1.75% upfront mortgage insurance premium ($4,988 on a $285,000 loan), pushing total closing costs to 4–6% of the purchase price.
These costs are not negotiable as a lump sum, but individual line items vary significantly between providers. The Consumer Financial Protection Bureau (CFPB) requires lenders to provide a Loan Estimate within 3 business days of your application, itemizing every fee. Comparing Loan Estimates from 3–4 lenders typically reveals $1,500–$3,000 in savings on lender fees alone. Title and settlement services, which account for another $2,500–$4,000, can also be shopped independently.
Cash purchases bypass lender fees entirely, reducing closing costs to 1–2% of the price (government fees and title insurance only). On a $400,000 cash purchase, you might pay just $4,000–$8,000 at closing. However, most buyers finance their purchase, making the full 2–5% range the realistic planning baseline.
| Fee Category | Typical Range | % of Home Price | Can You Shop? |
|---|---|---|---|
| Lender Fees | $2,500–$4,000 | 0.6–1.0% | Yes (compare lenders) |
| Title Fees | $2,500–$4,000 | 0.6–1.0% | Yes (independent agents) |
| Government Fees | $500–$3,000 | 0.2–0.8% | No (set by county/state) |
| Prepaid Items | $3,000–$8,000 | 0.8–2.0% | Partially (insurance) |
Lender fees compensate the bank for processing your loan. The origination fee (0.5–1% of the loan amount) is the largest lender charge: $1,600 on a $320,000 loan at 0.5%. Underwriting ($750), appraisal ($500), and credit report ($50) round out the lender category. Some lenders advertise “no origination fee” but compensate with a higher interest rate — compare the APR, not the fee list, for a true cost comparison.
Title fees protect your ownership rights. Title insurance (0.5% of the purchase price, or $2,000 on $400,000) covers legal defects in the title that could threaten your ownership. The title search ($400) investigates the property’s ownership history, escrow ($500) manages the fund transfer, and attorney review ($750) ensures contract compliance. These fees vary by state — some require attorney involvement, adding $500–$1,500.
Prepaid items are not fees but advance payments for recurring costs. You will prepay 3–6 months of property taxes into an escrow reserve ($1,200–$3,000), 1 year of homeowner’s insurance ($1,500–$2,500), and daily mortgage interest from the closing date through the end of the month ($15–$70/day). Closing at the end of the month minimizes prepaid interest; closing on September 28th versus September 3rd saves roughly $375–$1,750 in prepaid interest charges.
Seller concessions let buyers negotiate for the seller to cover part or all of closing costs. Conventional loans allow 3–9% of the sale price in seller credits depending on down payment size: 3% with less than 10% down, 6% with 10–25% down, and 9% with over 25% down. On a $400,000 home with 10% down, the seller can contribute up to $24,000 toward your closing costs, potentially covering them entirely.
FHA loans allow up to 6% seller concessions, while VA loans cap at 4% plus all “reasonable” closing costs (which most lender and title fees qualify as). In a buyer’s market, seller concessions are common because they allow the seller to maintain a higher sale price while the buyer reduces cash needed at closing. In competitive markets, asking for concessions may weaken your offer relative to others.
Lender credits trade a higher interest rate for upfront cost reduction. Accepting a rate 0.125–0.25% above market can generate $1,000–$3,000 in credits applied to closing costs. On a $320,000 loan, a 0.25% rate increase adds roughly $46/month to your payment but saves $2,500 at closing. If you plan to sell or refinance within 3–5 years, lender credits often make financial sense because you recoup the higher rate cost before it compounds significantly. Use the mortgage calculator to compare total cost under both rate scenarios.
Tip: Request your Closing Disclosure 3 days before closing and compare it line-by-line against your original Loan Estimate. Federal law limits how much certain fees can increase.
Enter your home price, down payment percentage, and loan type (Conventional, FHA, or VA) to see an itemized estimate of closing costs. The calculator breaks down lender fees, title fees, government fees, and prepaid items based on industry averages calibrated by loan type and down payment. FHA estimates include the 1.75% upfront mortgage insurance premium; VA estimates factor in the VA funding fee.
Adjust the inputs to compare scenarios. Increasing your down payment from 5% to 20% on a $400,000 home eliminates PMI-related prepaid costs and may shift closing costs from 4.9% to 2.8% of the purchase price — a $8,000+ difference. The total cash needed figure combines down payment and closing costs, giving you the complete picture for savings planning.
Enter home price and down payment
The loan amount (price minus down payment) determines lender fee percentages. Higher down payments reduce costs.
Select loan type
FHA adds 1.75% upfront MIP; VA adds a funding fee (1.25–3.3%); Conventional has no government insurance premium at 20%+ down.
Review the itemized breakdown
Each fee category is listed with individual line items. Identify which fees you can shop for and which are fixed.
Note total cash needed
This combines your down payment and closing costs. Start saving toward this number 6–12 months before your target purchase date.
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Last Updated: Mar 26, 2026
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