Closing Costs Calculator
The closing costs calculator is used for calculating the estimated closing costs for a purchase or refinance.
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What Are Real Estate Closing Costs?
Buying or selling property involves a number of specialists, each of which is verifying aspects of the transaction or property. The fees you pay for these services are called Closing costs and are paid at the closing of a real estate transaction. Typically, there are buyer’s closing costs and seller’s closing costs, related to different tasks done for each side of the transaction in preparation for the closing. Because there are many closing costs from a number of different sources, no closing cost calculator can cover all of them. We have built a real estate closing cost calculator to help you to understand approximately how much your property closing will cost you, based on answers to a number of questions. These questions help us to give you a quote that’s tailored to your situation: the type of transaction, your role in the transaction if there is a lender involved or any endorsements used.
What Fees Can You Expect At Closing?
Closing costs depend on a variety of factors, some of which can be estimated for a typical house sale and others that can’t be (legal issues, liens and the like are outside of any closing cost calculator’s abilities). The following list of fees are the most typical closing costs you will find (and have been included in Southern Title’s Closing Cost Calculator. Our closing cost estimate will not include any fees that your lender would assess for their activities as well. Of course, if your title transfer does not involve a lender, then you would not need those fees to calculate your total closing costs.
- Abstracting Fee: This fee covers the researching needed to verify a property’s historical transactions, prior owners, taxes owed and outstanding mortgages.
- ALTA 9 Endorsement: A common title insurance endorsement covering violation of covenants or property encroachments.
- Attorney / Notary Fee: This fee covers a notary or attorney’s review of the closing documents on behalf of the buyer or the lender.
- Closing Fee or Escrow Fee: This is the fee to the title company for conducting the closing and preparing the documents for a neutral third party.
- Courier / Overnight Delivery Fee: This covers the cost of transporting documents to complete the loan transaction as quickly as possible.
- Endorsement 8.1: Provides coverage against loss or damage sustained by reason of the lack of priority of the Insured Mortgage over certain environmental protection liens as defined in the endorsement.
- Insured Closing Letter: This fee covers the letter from the Title Insurer to the Lender stating the loan will be insured against any title claims arising due to title agent non-compliance with the lender’s loan instructions.
- Lender’s Policy Title Insurance: This is insurance to assure the lender that you own the home and the lender’s mortgage is valid, and it protects the lender if there is a problem with the title.
- Owner’s Policy Title Insurance: This is an insurance policy that protects the buyer from a number of claim types, some of which can lead to loss of the property if uninsured.
- Recording Fees: A fee charged by your local recording office, usually city or county, for the recording of public land records.
- Title Fee: This fee is paid to the title company for researchers the deed to your new home, ensuring that no one else has a claim to the property
- Wire Fee: This covers the cost of sending money to relevant parties after closing quickly and securely.
Typical lender fees (not included in our closing cost calculator and issued by your lender are shown below):
- Application Fee: This fee covers the cost for the lender to process your application
- Appraisal: This is paid to the appraisal company to confirm a property’s market value
- Credit Report: A credit report is pulled to get your credit history and score
- Escrow Deposit for Property Taxes & Mortgage Insurance: Two months of property tax and mortgage insurance payments at closing are often required by lenders
- FHA Up-Front Mortgage Insurance Premium (UPMIP): If you have an FHA loan, you’ll be required to pay the UPMIP of 1.75% of the base loan amount
- Flood Determination: This is paid to a third party to determine if the property is located in a flood zone. If the property is found to be located within a flood zone, you will need to buy flood insurance. The insurance, of course, is paid separately
- Flood Insurance: The cost of insurance that protects a homeowner (and lender) against losses from flooding events
- Home Inspection: You will likely get your own home inspection to verify the condition of a property and to check for home repairs that may be needed before closing
- Home Owners Association Transfer Fees: The Seller will pay for this transfer which will show that the dues are paid current, what the dues are, a copy of the association financial statements, minutes and notices
- Homeowners’ Insurance: This covers possible damages to your home. Your first year’s insurance is often paid at closing
- Lead-Based Paint Inspection: Covers the cost of evaluating lead-based paint risk
- Loan Discount Points: “Points” are prepaid interest. One point is one percent of your loan amount. This is a lump sum payment that lowers your monthly payment for the life of your loan
- Origination Fee: This covers the lender’s administrative costs, often about 1 percent of the total
- Pest Inspection: This fee covers the cost to inspect for termites or dry rot, which is required in some states and required for government loans
- Prepaid Interest: Most lenders will ask you to prepay any interest that will accrue between closing and the date of your first mortgage payment
- Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home’s purchase price, you’ll be required to pay PMI on the loan until its balance is under 20% of the total borrowed
- Property Tax: Outstanding taxes due should be paid off within 60 days of purchase by the loan servicer
- Survey Fee: This fee goes to a survey company to verify all property lines and things like shared fences on the property
- Transfer Taxes: This is the tax paid when the title passes from seller to buyer
- Underwriting Fee: This fee covers the cost of researching you and the property you intend to purchase for a loan
- VA Funding Fee: If you have a VA loan, you may be required to pay a VA funding fee at closing (or you can roll this fee into the cost of the loan if you prefer)
How Much Are Closing Costs?
Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. Your lender will give you a Loan Estimate for your loan, which will include what the closing costs on your home will be, within three business days of receiving your completed loan application. But these are just an estimate, and many of the fees listed can change. If they do change, you may receive a revised Loan Estimate so there are no surprises along the way. At least three business days before your closing, the lender should give you Closing Disclosure statement, which outlines closing fees. Compare this to your Loan Estimate and ask the lender to explain the various line items. Some fees have caps and others do not. Some fees can increase from the Loan Estimate to the Closing Disclosure, but generally, there really shouldn’t be any surprises on the closing day. If there are differences, you can still walk away at closing.