Approximate estimate — actual costs vary by lender
Loan Origination (1%)
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Appraisal + Inspection
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Title & Attorney
—
Transfer Tax (est.)
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Total cash needed at closing
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Down payment + all closing costs
What are mortgage closing costs?
Closing costs are the fees paid at the end of a real estate transaction when ownership officially transfers. On average, buyers pay 2–5% of the purchase price in closing costs, completely separate from the down payment. On a $400,000 home, that is an additional $8,000–$20,000 in cash.
Many first-time buyers are surprised by closing costs because lender advertisements focus on the down payment requirement. Always budget for both.
Frequently asked questions
How much are closing costs on a home purchase?
Buyers typically pay 2–5% of the purchase price in closing costs, separate from the down payment. On a $400,000 home that is $8,000–$20,000 in additional cash needed at closing.
What is included in mortgage closing costs?
Common closing costs include loan origination fees (0.5–1%), appraisal ($300–$700), home inspection ($300–$500), title insurance ($500–$1,500), and transfer taxes which vary significantly by state.
Can the seller pay my closing costs?
Yes. Seller concessions are common in buyer's markets. You can negotiate for the seller to cover 2–3% of closing costs, which preserves your cash but may slightly increase the purchase price.