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Closing cost are comprised of a few different fees or taxes associated with the mortgage process. you’ll find that closing costs on a home will be between 2% – 5% of the purchase price or value. Even though this seems like a relatively 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
Depending on few things, like the location of your home and some loan specific details, closing costs may be between 2% and 5% of the home’s purchase price. On a $550,000 home purchase, your closing costs will be between $11,000 and $27,500. Closing costs are comprised of different fees that are either related to the services provided by your mortgage lender, or related to the property itself. As the home buyer you will be responsible for the majority of the closing cost involved with your loan. 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.
| Closing Cost Percentage | Closing Cost Amount |
|---|---|
| 2% | $11,000 |
| 3% | $16,500 |
| 4% | $22,000 |
| 5% | $27,500 |
| 6% | $33,000 |
Closing Costs Breakdown
Here is a list of some of the fees/taxes that you may see associated with your closing costs. Some costs are directly related to your mortgage while others may be related to the property itself. Use our closing cost calculator to help estimate what your closing costs might 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
In order to best estimate what your closing cost will be, you should schedule a time with a Licensed Mortgage Advisor. They will go over your exact situation and take into account the property you are looking at, to get you the most accurate closing cost quote.
Another available option 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.