Budgeting beyond your down payment
Many first-time buyers focus entirely on the down payment and forget closing costs — but they add up. This calculator applies a typical 2%–5% range of your loan amount to estimate what you'll owe at the closing table, on top of your down payment. On a $350,000 purchase, that's anywhere from $7,000 to $17,500 in cash beyond your down payment — a swing large enough to change how much you can put down in the first place.
What actually makes up that 2%–5%
Closing costs are really a bundle of separate line items, not one fee:
- Lender fees: origination, underwriting, and application fees charged by the lender for processing your loan.
- Third-party fees: appraisal, credit report, survey, and (in some states) attorney fees paid to outside providers the lender requires.
- Title costs: title search and title insurance, which protects you and the lender against ownership disputes.
- Prepaids and escrow: the first months of homeowners insurance and property tax, plus prepaid daily interest between closing and your first payment.
- Government fees: recording fees and, in some states and counties, transfer taxes on the sale itself.
Purchase vs. refinance closing costs
The same categories apply on a refinance, but you'll usually skip title insurance costs tied to a new owner and some purchase-specific fees, while still paying appraisal, origination, and recording costs. See the Mortgage Refinance Calculator to check whether a refinance's closing costs pencil out against your monthly savings.
Ways to reduce your closing costs
- Compare Loan Estimates from multiple lenders — fees can vary meaningfully.
- Ask about a no-closing-cost loan option (usually trades a slightly higher rate).
- Negotiate seller concessions toward closing costs where the market allows it.
- Shop around for title insurance and other third-party services where permitted.
Once you know your total cash needed, revisit the Down Payment Calculator to make sure your overall cash-to-close plan is realistic.