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Closing cost are various fees associated with the mortgage process. On average the closing costs you will pay on any home will be between 2% – 5% of the home’s purchase price. Although this seems like a small amount, it is a very important financial aspect to consider when you decide to buy a home, because, aside from the amount you’ve saved up for your down payment, closing costs are due on closing day.
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Closing Cost Amount
There are a few different factors that make up your closing costs, like where you are buying your home and any taxes or fees that may be associated with your specific loan. Because of those factors, your closing costs may be between 2% and 5% of the home’s purchase price. The closing cost amount you will pay on a $700,000 home will be between $14,000 and $35,000.
Closing costs are comprised of several different fees and/or taxes that are either related to the services provided by your mortgage lender, or related to the property itself. As the buyer you will be responsible for the majority of the closing cost involved with your transaction. Keep in mind, aside from closing cost you will also have to consider the down payment, as both of these funds are due on closing day.
Remember that even though closing costs are a fairly standard percentage of your property’s value, your particular situation might mean you pay less in closing costs than just a rough estimate. The best way to accurately estimate YOUR closing costs is to talk to a Licensed Mortgage Advisor who can break everything down for you, and give you the best advice for the lowest closing cost amount.
| Closing Cost Percentage | Closing Cost Amount |
|---|---|
| 2% | $14,000 |
| 3% | $21,000 |
| 4% | $28,000 |
| 5% | $35,000 |
| 6% | $42,000 |
Closing Costs Breakdown
Below are some costs associated with your closing costs. Some of the costs are related directly to your loan while others may be related directly to the property. You can use our closing cost calculator to help estimate what your closing costs may be.
Closing Costs Associated with Your Loan
- Origination
- Points
- Appraisal
- Credit Report
- Flood Certification
- Title Search & Lender Title Insurance
- Home Inspection
- Postage
- Survey
- Attorney & Closing Fees
Closing Costs Associated with Your Property
- Government Recording Fee
- Transfer Tax
- Homeowners Insurance
- Up Front Mortgage Insurance
- Daily Interest
- Escrow Homeowners Insurance
- Escrow Property Taxes (3 months)
- Title Insurance
Check Your Closing Costs
The best way to accurately predict what your closing cost will be on your loan is to schedule a time with a Licensed Mortgage Advisor. They will go over your unique situation and take into account the specific property you are looking at to get you the most accurate closing cost quote.
Another option you have to estimate the closing cost would be to use our Rate and Closing Cost Quote. It takes less than 60 seconds and gives you several different rate and closing cost options. You get to pick which one makes the most sene for you.