Bureau of Wealth

Closing Costs Calculator: Cash to Close

By the Bureau of Wealth team Updated

This calculator is general information, not financial advice. Check your own figures with the provider or a qualified adviser before acting on them.

Enter the costs from your Loan Estimate to total your closing costs and see how much cash you will need to bring to closing.

Closing costs from your Loan Estimate

The figures below are examples. Replace them with the amounts on page 2 of your Loan Estimate.

What the lender charges to make the loan, including any points.

For example the appraisal and credit report.

For example title services and the survey.

Recording fees and transfer taxes.

Homeowner's insurance, prepaid interest and property taxes paid in advance.

Check the highlighted fields to see your results.

What this calculator assumes

  • Costs are grouped the way they appear on page 2 of the Loan Estimate, from Origination Charges to Other. The starting figures are examples only, so replace them with the amounts from your own Loan Estimate.
  • Cash to close is your down payment plus closing costs, minus lender credits, seller credits and any earnest money deposit you have already paid. Other adjustments on your Loan Estimate, such as prorated property taxes, are not included.
  • The loan amount is the home price minus the down payment. Mortgage insurance, discount points or fees financed into the loan are not added to it.
  • The calculator does not estimate costs for you. Closing costs vary by lender, loan type and location, so the most reliable numbers are the ones on your Loan Estimate.

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What closing costs are

Closing costs are the fees and upfront payments you make to get a mortgage and complete the purchase, on top of your down payment. Some go to the lender for making the loan, some to other companies for services like the appraisal or title work, and some to state and local governments.

You do not have to guess them. After you apply, your lender must send you a Loan Estimate, a three-page form showing the estimated costs of the loan you applied for. The Consumer Financial Protection Bureau says you should receive it within three business days after the lender has your name, income, Social Security number, the property address and value, and the loan amount you want.

How the calculator adds them up

The inputs follow the closing cost sections on page 2 of the Loan Estimate. A. Origination Charges are what the lender charges to make the loan. B. Services You Cannot Shop For are services the lender chooses, such as the appraisal. C. Services You Can Shop For are services where you may pick the provider, such as title services. E. Taxes and Other Government Fees cover recording fees and transfer taxes. F. Prepaids are costs paid in advance, such as homeowner's insurance and interest. G. Initial Escrow Payment at Closing is the amount placed in escrow for recurring costs like property taxes and insurance. H. Other covers anything else.

The calculator adds these sections together, then works out cash to close: your down payment plus closing costs, minus lender credits, seller credits and the earnest money deposit you have already paid.

A worked example

On a $400,000 home with 10% down, the down payment is $40,000 and the loan amount is $360,000. Suppose the Loan Estimate shows $3,000 in origination charges, $1,200 in services you cannot shop for, $2,500 in services you can shop for, $800 in taxes and government fees, $1,500 in prepaids and $2,000 for the initial escrow payment. That is $11,000 in closing costs, or 2.75% of the price.

With a $1,000 lender credit, $2,000 from the seller toward closing costs and a $5,000 earnest money deposit already paid, the cash to close is $40,000 plus $11,000, minus $8,000, which comes to $43,000.

Comparing offers and checking the final numbers

The CFPB suggests asking several lenders for a Loan Estimate for the same kind of loan and comparing them, paying particular attention to Origination Charges and Services You Cannot Shop For, because costs vary between lenders and between loan types. Services you can shop for are worth comparing too.

Before closing, your lender must give you a Closing Disclosure at least three business days before you close. Compare it with your latest Loan Estimate to check the terms and costs are what you expected. Some costs can change, but there are legal limits on what can change and by how much.

Closing costs are only part of what a mortgage costs. The loan repayment calculator shows the monthly payment and total interest on the amount you borrow.

Frequently asked questions

Where do I find my closing costs?

Page 2 of your Loan Estimate lists them by section, from Origination Charges to Other. Your lender must send the Loan Estimate within three business days after you give them the information they need for your application.

What is cash to close?

The CFPB describes it as the estimated amount you will have to bring to closing. It includes your down payment and closing costs, minus any deposit already paid to the seller, seller credits and other adjustments.

Can I lower my closing costs?

Comparing Loan Estimates from several lenders is the most direct way, since origination charges and other costs vary between lenders. You can also shop around for the services listed under Services You Can Shop For.

What are lender credits?

Lender credits reduce the closing costs you pay at closing, and they appear on the Loan Estimate. If a lender offers credits, ask how that offer affects your interest rate before you compare it with other quotes.

Can closing costs change before closing?

Some can. Your Closing Disclosure arrives at least three business days before closing so you can compare it with your Loan Estimate, and there are legal rules limiting which costs can increase and by how much.

Sources

Figures come from institutions millions of people rely on. How we keep calculators accurate.