How to use this closing cost calculator
The closing cost calculator estimates buyer closing costs across conventional, FHA, VA and USDA loan types. It is designed to show how the cost mix changes when the loan program, home price, down payment or program-specific fees change.
Use the loan-type tabs to compare how conventional, FHA, VA and USDA closing costs can differ. The VA tab includes funding-fee inputs because the VA funding fee depends on first use vs. subsequent use, down payment and exemption status.
The calculator is an estimate. The actual numbers come from the lender’s Loan Estimate after application and the final Closing Disclosure before closing.
What is actually in your closing costs
Closing costs usually fall into three broad categories: lender fees, third-party fees and prepaids or escrow deposits. Loan-type-specific charges can add to those categories.
Lender fees
Lender fees may include origination, underwriting, processing, application, credit report and document preparation charges. On VA loans, the VA limits lender origination charges in ways that can affect the cost comparison with other loan types.
Third-party fees
Third-party fees are paid to providers involved in the transaction. They may include appraisal, title search, lender’s title insurance, settlement, recording, survey, pest inspection, HOA certification, well inspection or septic inspection fees. Costs vary by state, county, property and provider.
Prepaids and escrow setup
Prepaids and escrow deposits can include prepaid interest, homeowners insurance premiums, property tax deposits and escrow setup. These are part of cash needed at closing, but they are different from lender fees.
Loan-type-specific closing costs
Each loan type can add costs that do not apply to every other loan program. Those costs can affect cash to close, monthly payment and how the loan compares with alternatives.
| Loan Type |
Program-Specific Cost |
How It Is Usually Paid |
| Conventional |
No standard upfront mortgage insurance charge. PMI may apply monthly below 20% down. |
Closing costs are usually paid at closing or offset by credits. |
| FHA |
Upfront mortgage insurance premium and annual mortgage insurance. |
Upfront MIP is often financed into the loan. |
| VA |
VA funding fee unless exempt. |
Often financed into the loan or paid at closing. |
| USDA |
Upfront guarantee fee and annual guarantee fee. |
The upfront guarantee fee is often financed. |
The VA funding-fee table for many purchase loans lists rates from 1.25% to 3.30%, depending on down payment and first or subsequent use. USDA materials list a 1.00% upfront guarantee fee and 0.35% annual fee for the Single Family Housing Guaranteed Loan Program.
How to reduce closing costs
Borrowers may be able to reduce out-of-pocket closing costs through credits, negotiation or provider shopping where allowed. The right approach depends on the loan, rate, seller, state rules and how long the borrower expects to keep the loan.
Seller concessions
Seller concessions are credits from the seller toward allowable closing costs. Limits vary by loan type, down payment and occupancy. A concession can reduce cash to close, but it must fit program rules and the purchase contract.
Lender credits
Lender credits reduce upfront costs in exchange for different loan pricing, often a higher interest rate. The trade-off is lower cash needed now vs. a potentially higher monthly payment and more interest over time.
Shop title and settlement services
The Loan Estimate may show which services a borrower can shop for. Title and settlement charges can vary, depending on state rules and provider pricing.
Close later in the month
Prepaid interest depends partly on the closing date. Closing later in the month can reduce prepaid interest collected at closing, although it does not eliminate the cost of borrowing.
Finance program-specific upfront charges
Some program-specific charges, such as FHA upfront MIP, VA funding fee and USDA upfront guarantee fee, are often financeable. Financing preserves cash at closing but increases the loan balance.
Closing costs vs. cash to close
Closing costs are the fees and prepaid items connected to the mortgage and home purchase. Cash to close is the actual amount due at closing after adding the down payment and costs, then subtracting credits and deposits already paid.
| Term |
Meaning |
| Closing Costs |
Lender fees, third-party charges, prepaids, escrow deposits and program-specific fees. |
| Cash To Close |
The final amount a borrower needs to bring to closing after down payment, credits and deposits are counted. |
Sample closing cost estimates by loan type
The table below uses a $400,000 purchase to show how different loan types can change the cost structure. It is for educational purposes only. Actual closing costs come from the Loan Estimate and vary by lender, state, county, property, loan program and transaction details.
| Loan Type |
Program-Specific Item |
What It Can Do To Cash To Close |
| Conventional |
PMI may apply monthly below 20% down. |
No standard upfront mortgage insurance charge, but lender and third-party costs still apply. |
| FHA |
Upfront MIP may be financed. |
Can increase the loan balance if financed rather than paid upfront. |
| VA |
Funding fee unless exempt. |
Can increase the loan balance if financed, or cash needed if paid upfront. |
| USDA |
Upfront guarantee fee is often financed. |
Can preserve cash at closing but increase the loan balance. |
When you will see your real closing costs
The Loan Estimate shows estimated loan terms, payment, closing costs and cash to close. The CFPB says a lender must provide a Loan Estimate after receiving a mortgage application with the required pieces of information.
The Closing Disclosure shows final loan terms and costs. The CFPB says lenders are required to provide the Closing Disclosure three business days before the scheduled closing.
Comparing the Loan Estimate with the Closing Disclosure helps identify cost changes before signing.
Frequently asked questions
How much are closing costs on a $400,000 home?
Closing costs are often estimated as a percentage of the purchase price, but the actual amount depends on loan type, location, lender, title fees, prepaids, tax setup and credits. A lender’s Loan Estimate gives the clearest transaction-specific number.
Can closing costs be rolled into the mortgage?
Some program-specific upfront charges can often be financed, such as FHA upfront MIP, the VA funding fee and the USDA upfront guarantee fee. General buyer closing costs are usually paid at closing or offset by seller or lender credits, depending on program rules.
Which loan type has the lowest closing costs?
There is no universal lowest-cost loan type. VA may have lower cash-to-close in some cases because of no down payment and no monthly mortgage insurance, while conventional can be competitive at larger down payments because it does not add a standard upfront program fee.
Are closing costs tax-deductible?
Some costs, such as mortgage interest, property taxes or certain points, may receive different tax treatment than lender or settlement fees. Tax rules vary by situation, so a tax professional should review the specific closing statement.
What is the difference between a Loan Estimate and a Closing Disclosure?
The Loan Estimate shows estimated loan terms and costs earlier in the process. The Closing Disclosure shows final terms and costs and must be provided three business days before closing.
Do buyers need a cashier’s check or wire transfer at closing?
Closing companies often require certified funds or a wire transfer for cash due at closing. The title company or settlement agent should provide exact instructions before closing.
What to review next
After estimating closing costs, compare the Loan Estimate, cash to close, down payment, program-specific fees and monthly payment for each loan type under consideration.
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