How Much Are Closing Costs on Top of My Down Payment?
Closing costs are generally separate from the down payment, so buyers should plan for both when estimating the cash needed to purchase a home.
Your down payment and your closing costs are generally different parts of the money needed for a home purchase.
Closing costs vary by loan, property, location and transaction. They can include lender charges, title-related costs, appraisal charges, government recording charges, prepaid expenses and other items.
The Loan Estimate and, later, the Closing Disclosure provide transaction-specific information that is more useful than relying on one universal percentage.
The down payment is not the whole upfront cost
The down payment is the portion of the purchase price you contribute rather than finance. Closing costs are transaction and loan-related charges and other amounts associated with completing the purchase.
What can be included in closing costs
- Lender and loan-origination charges
- Appraisal and other required services
- Title and settlement charges
- Government recording or transfer charges when applicable
- Prepaid interest, taxes or insurance
- Initial escrow funding when applicable
The exact amount depends on the transaction
There is no single closing-cost amount that applies to every buyer. Loan structure, property location, service providers, taxes, insurance and negotiated credits can all change the amount.
Use your loan documents
The Loan Estimate provides estimated loan terms and closing costs after a mortgage application reaches the applicable stage. The Closing Disclosure provides final loan and closing information before consummation.
Plan for more than two numbers
Buyers may also want money available for moving, immediate household needs and a financial cushion after closing rather than planning only for the down payment and listed closing charges.
Put your available cash into the full homebuying picture
Buyer Checkpoint helps organize factors that may shape a homebuying conversation, including down-payment thinking, timeline, credit range, income stability, lender status and other readiness factors.
Buyer Checkpoint is informational and is not a mortgage application, preapproval, underwriting decision or guarantee of financing.