How much cash do you need at closing?
Add your closing costs to your down payment, then subtract what's already paid or credited. Federal rules set out these lines on the Loan Estimate, and the calculator follows the same order. In this example the answer is $45,032.
| Line | Amount |
|---|---|
| Total closing costs | $10,031.65 |
| Closing costs financed | $0.00 |
| Down payment | $40,000.00 |
| Deposit | -$5,000.00 |
| Seller credits | $0.00 |
| Adjustments and other credits | $0.00 |
| Cash to close | $45,031.65 |
We don't publish a state or national average on this page. Your own Loan Estimate is far better than a typical figure, and a lender must send one within three business days after it receives your application. Enter its numbers here to test changes, like a different closing date or a seller credit.
What are closing costs? The sections on a Loan Estimate
Page 2 of the Loan Estimate splits them into loan costs and other costs. Our example's $3,770 of loan costs and $6,262 of other costs fall like this.
| Section | What goes here | Example |
|---|---|---|
| A. Origination charges | What the lender or broker charges, with points listed first | $1,200 |
| B. Services you cannot shop for | Required services from a provider the lender picks. An upfront FHA premium, VA funding fee, or upfront PMI goes here | $670 |
| C. Services you can shop for | Required services where you choose the provider, often title work | $1,900 |
| D. Total loan costs | A + B + C | $3,770 |
| E. Taxes and other government fees | Recording fees and transfer taxes | $1,150 |
| F. Prepaids | Homeowner's insurance, mortgage insurance, prepaid interest, and property taxes | $2,762 |
| G. Initial escrow payment | Months of insurance and tax your lender collects upfront | $1,550 |
| H. Other | Other third-party amounts, with optional products marked as optional | $800 |
| I. Total other costs | E + F + G + H | $6,262 |
| J. Total closing costs | D + I, less lender credits | $10,032 |
Only some of this is what a lender charges. In the example, $4,312 is prepaids and escrow, meaning insurance, interest, and taxes you'd pay as an owner anyway. When you compare lenders, the CFPB suggests comparing the origination charges. Section C shows what you can shop for yourself.
Can closing costs go up after the Loan Estimate?
Some can, and federal rules limit by how much. A cost that wasn't limited isn't necessarily wrong, but it's the one to check first. In the example, $5,112 sits in prepaids, escrow, and other costs, which often have no fixed cap.
| Cost | Limit on increases |
|---|---|
| Lender and broker charges, and services you can't shop for | Generally can't rise |
| Transfer taxes | Generally can't rise |
| Services you can shop for, using the lender's list, plus recording fees | Can rise up to 10% in total |
| Prepaid interest, property insurance, property taxes, and escrow | No fixed limit, but must be a good-faith estimate |
| Services you pick from outside the lender's list, or that the lender doesn't require | No fixed limit, but must be a good-faith estimate |
Your Closing Disclosure shows the final numbers and must reach you at least three business days before closing. Compare it line by line with your Loan Estimate, and ask about anything that went up.
How do the down payment and closing costs add up?
A bigger down payment raises your cash to close almost dollar for dollar, because most costs here don't shrink with it. Only the items tied to the loan do, such as prepaid interest and any points. Going from 5% to 20% down on this example home adds $59,840 to your cash to close, while prepaid interest falls by $160.
| Down payment | Amount | Loan | Prepaid interest | Total closing costs | Cash to close |
|---|---|---|---|---|---|
| 3% | $12,000 | $388,000 | $1,037 | $10,107 | $17,107 |
| 5% | $20,000 | $380,000 | $1,015 | $10,085 | $25,085 |
| 10% | $40,000 | $360,000 | $962 | $10,032 | $45,032 |
| 15% | $60,000 | $340,000 | $908 | $9,978 | $64,978 |
| 20% | $80,000 | $320,000 | $855 | $9,925 | $84,925 |
How does your closing date change prepaid interest?
Prepaid interest usually covers the days from closing to the end of that month. On this $360,000 loan at 6.5%, that's $64.11 a day. So closing near month-end lowers your cash at closing, but it isn't a discount. You're simply not paying for days you don't have the loan.
| Closing day | Days charged | Prepaid interest | Cash to close |
|---|---|---|---|
| 1 | 31 | $1,987.41 | $46,057 |
| 10 | 22 | $1,410.42 | $45,480 |
| 15 | 17 | $1,089.87 | $45,160 |
| 20 | 12 | $769.32 | $44,839 |
| 25 | 7 | $448.77 | $44,519 |
| 30 | 2 | $128.22 | $44,198 |
| 31 | 1 | $64.11 | $44,134 |
What seller credits, lender credits, and points really do
A seller credit lowers your cash at closing, not your costs. A $3,000 credit moves the example from $45,032 to $42,032. Your loan program or contract can limit how much you can use.
A lender credit isn't free either. The CFPB says you're still paying for those costs, just through your loan, and lender credits work like points in reverse: money now for a higher rate. Points go the other way. One point here adds $3,600 to Section A. Use the mortgage points calculator to see when either choice pays off.
"No closing costs" usually means they were moved, not removed: into your loan or into a higher rate. If they're added to your loan, enter them under closing costs financed. Your cash falls by that amount, but your loan grows and you pay interest on it. To test a smaller or larger down payment, use the down payment calculator.
A HUD-approved housing counselor can go through a Loan Estimate with you, often at little or no cost. For questions about a contract or title problem, a real estate attorney is the right person to ask.
Common questions
What are closing costs for a buyer paying cash?
Lower, since there's no lender. Set the down payment to 100% and clear Sections A and B, escrow, and prepaid interest. You'd usually still have title work, recording fees, and any transfer taxes. Check with your title or settlement company.
Does this work for FHA and VA loans?
Yes. The sections are the same. Add an upfront FHA premium or VA funding fee as a line in Section B. If you roll it into the loan, enter it under closing costs financed too. Our mortgage calculator estimates those fees.
What about Florida, Texas, or my state?
The form is the same nationwide. Your state and county mostly change Section E. We don't list state figures because we haven't verified them for every county. Your Loan Estimate, title company, or county recorder can give you the local amounts.
Does this estimate seller closing costs?
No. This is the buyer's side only, so it leaves out items like a seller's agent commission. For a sale, ask your agent or settlement company for an estimated net sheet.
Does this work for a refinance?
The sections are similar, though a refinance has no down payment and may have no deposit or seller credits. To decide whether one is worth it, use the refinance calculator.
Can I add my own lines?
Yes. Each section accepts up to 14 lines. You can rename them, change the amounts, or delete them. Download the list as a CSV to compare it with a Loan Estimate.
Sources
- Loan Estimate explainer · Consumer Financial Protection Bureau
- What fees or charges are paid when closing on a mortgage and who pays them? · Consumer Financial Protection Bureau
- What are discount points and lender credits and how do they work? · Consumer Financial Protection Bureau
- 12 CFR § 1026.37: Content of disclosures (Loan Estimate) · Legal Information Institute, Cornell Law School
- 12 CFR § 1026.19: Certain mortgage and variable-rate transactions · Legal Information Institute, Cornell Law School