{
  "id": "closing-cost",
  "version": "7e2092568a1d",
  "status": "published",
  "name": "Closing Cost Calculator",
  "question": "How much are my closing costs?",
  "summary": "Adds up the closing costs of a home purchase in the sections of the Loan Estimate: lender charges, services, government fees, prepaid interest and insurance, and the escrow deposit, with the cash to close.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/closing-cost-calculator",
  "markdown": "https://www.acalculator.org/finance/closing-cost-calculator.md",
  "kind": "function",
  "method": "total = (origination % + points) × loan + services + recording + transfer % × price + a year of insurance + loan × rate ÷ 365 × days + (monthly tax + monthly insurance) × escrow months.",
  "assumptions": [
    "Every fee is an amount you enter; the defaults are examples, not quotes. Fees and transfer taxes vary by lender and place.",
    "Prepaid interest is the loan × the yearly rate ÷ 365 for each day; the first year of insurance is paid at closing.",
    "The escrow deposit is whole months of property tax and insurance; prepaid property tax and HOA transfer fees are not included.",
    "Credits pay closing costs only, so they lower the cash to close, never below the down payment."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "price": {
        "title": "Home price",
        "description": "The price of the home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 100000000
      },
      "down": {
        "title": "Down payment",
        "description": "The cash you pay toward the price. The loan is the price minus this.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "rate": {
        "title": "Interest rate",
        "description": "The yearly mortgage rate, used for the interest paid at closing.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "origination": {
        "title": "Origination charges",
        "description": "The lender’s application, underwriting, and origination fees, as a percent of the loan.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 10
      },
      "points": {
        "title": "Discount points",
        "description": "Points paid to lower the rate. One point is 1% of the loan.",
        "type": "number",
        "minimum": 0,
        "maximum": 10
      },
      "services": {
        "title": "Appraisal, title, and other services",
        "description": "Appraisal, credit report, title insurance, settlement, survey, and inspection fees.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "recording": {
        "title": "Recording fees",
        "description": "Government fees to record the deed and the mortgage.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      },
      "transfer": {
        "title": "Transfer tax paid by you",
        "description": "State and local transfer tax you pay, as a percent of the price. It varies by place.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 10
      },
      "credit": {
        "title": "Seller and lender credits",
        "description": "Credits from the seller or lender that pay part of the closing costs.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "days": {
        "title": "Days of prepaid interest",
        "description": "Days from closing to the end of the month, whose interest is paid at closing.",
        "type": "integer",
        "minimum": 0,
        "maximum": 31
      },
      "insurance": {
        "title": "Home insurance (per year)",
        "description": "The yearly homeowners insurance premium. The first year is paid at closing.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      },
      "tax": {
        "title": "Property tax (per year)",
        "description": "The yearly property tax as a percent of the price, used for the escrow deposit.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 10
      },
      "escrow": {
        "title": "Months of escrow deposit",
        "description": "Months of property tax and insurance the lender collects at closing for the escrow account.",
        "type": "integer",
        "minimum": 0,
        "maximum": 24
      }
    }
  },
  "outputs": {
    "total": {
      "label": "Total closing costs",
      "description": "Lender charges, services, government fees, prepaids, and the escrow deposit.",
      "format": "money"
    },
    "share": {
      "label": "Share of the price",
      "description": "Total closing costs as a percent of the home price.",
      "format": "percent"
    },
    "cash": {
      "label": "Cash to close",
      "description": "The down payment plus the closing costs, minus credits.",
      "format": "money"
    },
    "lender": {
      "label": "Origination charges and points",
      "description": "Origination charges and discount points (Loan Estimate section A).",
      "format": "money"
    },
    "servicesCost": {
      "label": "Services",
      "description": "Appraisal, title, and other services (sections B and C).",
      "format": "money"
    },
    "government": {
      "label": "Taxes and government fees",
      "description": "Recording fees and transfer tax (section E).",
      "format": "money"
    },
    "prepaids": {
      "label": "Prepaids",
      "description": "A year of home insurance and the interest to the end of the closing month (section F).",
      "format": "money"
    },
    "deposit": {
      "label": "Initial escrow deposit",
      "description": "Months of property tax and insurance put in the escrow account (section G).",
      "format": "money"
    },
    "loan": {
      "label": "Loan amount",
      "description": "The price minus the down payment.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "price": 400000,
      "down": 80000,
      "rate": 6.5,
      "origination": 1,
      "points": 0,
      "services": 3500,
      "recording": 150,
      "transfer": 0,
      "credit": 0,
      "days": 15,
      "insurance": 1500,
      "tax": 1.1,
      "escrow": 3
    },
    "outputs": {
      "total": 10679.794520547945,
      "share": 2.6699486301369864,
      "cash": 90679.79452054795,
      "lender": 3200,
      "servicesCost": 3500,
      "government": 150,
      "prepaids": 2354.7945205479455,
      "deposit": 1475.0000000000002,
      "loan": 320000
    },
    "text": "Buying a $400,000.00 home with $80,000.00 down costs $10,679.79 at closing, so you need $90,679.79 to close."
  },
  "examples": [
    {
      "given": {
        "price": 400000,
        "down": 80000,
        "rate": 6.5,
        "origination": 1,
        "points": 0,
        "services": 3500,
        "recording": 150,
        "transfer": 0,
        "days": 15,
        "insurance": 1500,
        "tax": 1.1,
        "escrow": 3,
        "credit": 0
      },
      "expect": {
        "lender": 3200,
        "prepaids": 2354.7945205479455,
        "deposit": 1475,
        "total": 10679.794520547945,
        "cash": 90679.79452054795,
        "share": 2.669948630136986
      },
      "source": "Regulation Z, 12 CFR 1026.37(f) and (g): the Loan Estimate’s closing cost sections; hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/closing_cost.py)"
    },
    {
      "given": {
        "price": 250000,
        "down": 8750,
        "rate": 7,
        "origination": 0.5,
        "points": 1,
        "services": 2800,
        "recording": 200,
        "transfer": 1,
        "days": 10,
        "insurance": 1200,
        "tax": 1.5,
        "escrow": 2,
        "credit": 5000
      },
      "expect": {
        "lender": 3618.75,
        "government": 2700,
        "prepaids": 1662.6712328767123,
        "deposit": 825,
        "total": 11606.421232876712,
        "cash": 15356.42123287671
      },
      "source": "hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/closing_cost.py)"
    },
    {
      "given": {
        "price": 300000,
        "down": 300000,
        "rate": 6,
        "origination": 1,
        "points": 0,
        "services": 2000,
        "recording": 100,
        "transfer": 0,
        "days": 20,
        "insurance": 1200,
        "tax": 1,
        "escrow": 0,
        "credit": 0
      },
      "expect": {
        "loan": 0,
        "lender": 0,
        "prepaids": 1200,
        "total": 3300,
        "cash": 303300
      },
      "source": "hand calculation in content.mdx: a cash purchase has no loan, so no lender charges or prepaid interest"
    }
  ],
  "sources": [
    "Freddie Mac, What are closing costs and how much will I pay? (2% to 5% of the purchase price). https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay",
    "Consumer Financial Protection Bureau, Loan Estimate explainer. https://www.consumerfinance.gov/owning-a-home/loan-estimate/",
    "Regulation Z, 12 CFR 1026.37(f) and (g): closing cost details on the Loan Estimate (origination charges, services, taxes and other government fees, prepaids, initial escrow payment). https://www.consumerfinance.gov/rules-policy/regulations/1026/37/"
  ],
  "related": [
    "mortgage",
    "down-payment",
    "home-affordability",
    "home-sale-proceeds"
  ],
  "changelog": []
}