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Total Usage 2 times
Est. Cash to Close: $0

1. Deal Architecture

$
/
Day 15
Affects Prepaid Interest calculation

2. Lender & Origination

3. Title & Government

Auto-estimated based on Price
State-specific logic applied

4. Prepaids & Escrow Setup

Estimates are for educational purposes. Actual fees vary by lender.

Financial Summary
Cash to Close $0
Down Payment $0
Total Closing Costs $0
Lender Origination $0
Title & Legal $0
Govt. & Transfer $0
Prepaids & Escrow $0
Prepaid Interest $0
Est. Monthly P&I $0
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About

Closing costs represent the accumulation of fees required to finalize a real estate transaction, distinct from the down payment. While often estimated at 2% to 5% of the purchase price, the variance depends heavily on jurisdiction, loan product (FHA vs. Conventional), and the specific day of the month the transaction closes.

This estimator utilizes an advanced logic engine to account for variable factors such as Per Diem Interest, Transfer Tax Brackets (including "Mansion Taxes"), and Lender Escrow Reserves. It is designed to provide homebuyers and agents with a mathematically rigorous projection of the total liquidity (Ctotal) required at the settlement table.

closing costs mortgage calculator cash to close transfer tax title insurance FHA loans real estate closing

Formulas

The precise Cash to Close (Cclose) is determined by the summation of the Down Payment (D) and Total Closing Costs (Tcost), adjusted for Credits (Cr).

Cclose = D + Tcost Cr

The Total Closing Cost is a composite function:

Tcost = Sum(Feesorigination, Feestitle, Taxtransfer, Escrowreserves)

Where Prepaid Interest (Ipre) is calculated based on the days remaining in the month of closing:

Ipre = L × r365 × (DaysInMonth DayClosing + 1)

Reference Data

CategoryFee ComponentCalculation BasisTypical Range
Lender FeesOrigination & Points% of Loan Amount (L)0.5% − 1.5%
Underwriting / AdminFlat Fee$900$1,500
Govt. FeesTransfer Taxes% of Purchase Price (P)0% − 4% (State Dependent)
Recording FeesPer Page / Per Doc$80$250
Third PartyTitle Insurance (Lender)Tiered Rate based on L$500$2,500
Appraisal & SurveyFlat Fee$450$800
PrepaidsPrepaid InterestL × r / 365 × DaysVaries by Closing Date
Tax Escrow SetupMonthly Tax × (2 to 6 months)1% − 2% of Value

Frequently Asked Questions

Yes, significantly. You pay interest on your loan from the day of closing until the end of that month ('Prepaid Interest'). Closing on the 29th means you only pay for 1-2 days of interest upfront. Closing on the 1st requires paying for the entire month upfront. However, this is just a cash-flow timing difference, not a saving on the total debt cost.
Some jurisdictions (notably New York, New Jersey, and Connecticut) impose a supplemental transfer tax on properties exceeding a certain value threshold (often $1,000,000). This is a progressive tax that can add 1% or more to the closing costs instantly if the price crosses the threshold.
FHA loans require an "Upfront Mortgage Insurance Premium" (UFMIP), typically 1.75% of the loan amount. This fee is often rolled into the loan balance rather than paid in cash, but it technically counts as a closing cost. This tool allows you to toggle whether you are financing this fee or paying it out of pocket.
Lenders want to ensure you have enough money to pay future property taxes and insurance. At closing, they collect a "cushion" - typically 2 to 3 months' worth of these payments - to start your escrow account. This is your money, held by the bank.