What are Mortgage Closing Costs?

Closing costs are fees paid at the time of closing for the expenses and various services that are required to complete a mortgage. Mortgage closing costs will be paid on a mortgage whether it is a purchase or a refinance. In a purchase situation the majority of these costs are paid by the buyer, with the seller just paying a portion. Closing costs can vary depending on what services are used, where the property is located, how much the loan is for as well as a number of other factors. Want to get an estimate of how much your closing costs may be? Use the closing cost calculator below to get an estimate.

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How Much Will You Have to Pay for Closing Costs?

Understanding closing costs and being able to estimate what they will be for your situation can be a huge help. On average mortgage closing costs can range anywhere from 2% to 5% of the loan amount. So as an example, a loan amount of $230,000 would have a closing cost of between $4,600 to $11,500. Most people can get a little surprised by the amount of closing costs when they first hear about them. Use the calculator below to estimate how much you will need to bring to the closing table.

Closing Cost Calculator

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Closing Cost Details Cost Breakdown

Property Location

Home Price

Down Payment / 20%

All information and results provided by this Closing Cost Calculator are estimates only. They will in no way accurately reflect actual closing costs. This calculator is to be used only to establish and estimate of closing costs. There are many unique factors that will affect the actual cost.

Loan Type

VA FHA Other

Loan Amount


Closing Costs


Closing Cost & Fees


Escrow & Other Expenses


Total Due at Closing


Mortgage Closing Cost Terms

Home Price

The home price, or purchase price, is the agreed upon amount that buyer is willing to pay for the home they are getting a mortgage for.

Down Payment

The down payment on the home is a percentage of the purchase price that is paid at closing. The average is about 20% but can be as low as 3.5% in some cases. It will affect how much you need to borrow, whether you will pay PMI and also what interest rate you are offered.

Up Front Mortgage Insurance

Depending on the loan program, a borrower may have to pay the first year’s mortgage insurance premium upfront, or even a lump sum payment. This cost may range from 0.55% to 2.25% of the purchase price for mortgage insurance.

Origination Charges

An origination charge, or origination fee, is the amount your lender will charge for processing the loan.

Property Tax

Property tax is a tax paid on property and land you own. It is usually calculated by the local government where the property is located. It is a percentage of the assessed value of your property and land. This payment can be made by you as a lump some, or added to your monthly mortgage payment.

Owner’s Title Insurance

Owner’s title insurance provides the homeowner some protection in the event they are sued over a claim on the property prior to the purchase.

Homeowner’s Insurance

Homeowner’s insurance protects your home and the belongings inside in the event of a disaster like a fire or flood. Most lenders require you have homeowner’s insurance on your home as it will also help protect their investment.

Home Inspection

A home inspection involves a home inspector, using the state’s laws and standards, to help identify any structural, mechanical, health and safety issues a property may have. The inspection is usually required by a lender and paid for by the buyer.

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