How much are closing costs?

Typical closing costs run 2-5% of purchase price for the buyer (excluding down payment). On a $300k home, expect $6,000-$15,000 depending on state, loan type, and negotiated origination fee. High-transfer-tax states (PA, NY, DE) trend toward the high end.

What is included in closing costs?

Five categories: (1) lender fees — origination, appraisal, credit, underwriting; (2) title — lender + owner title insurance, search, settlement; (3) government — recording, transfer tax; (4) prepaid — first-year hazard insurance, property tax escrow; (5) inspection — survey, home, pest.

Who pays closing costs — buyer or seller?

In most states, buyer and seller each pay their own. Seller typically covers real-estate commission (5-6% of sale); buyer covers lender fees, title, prepaids, and inspection. Transfer tax allocation varies — by custom in WA the seller pays, in PA both split.

What is a TRID Closing Disclosure?

TRID (TILA-RESPA Integrated Disclosure) rule, effective Oct 3, 2015 per CFPB Reg Z, requires lenders to deliver a 5-page Closing Disclosure at least 3 business days before closing. It supersedes the pre-2015 HUD-1 settlement statement and 2-page Good Faith Estimate.

Can closing costs be negotiated?

Yes — origination, application, underwriting, and processing fees are often negotiable, especially in competitive lender markets. Title insurance is regulated in some states (TX, NM, FL) so quotes are uniform; in others, you can shop title agents independently.

Can the seller pay buyer closing costs?

Yes — seller concessions are allowed on conventional, FHA, and VA loans within limits. Conventional caps at 3% (LTV > 90%) to 9% (LTV ≤ 75%). FHA caps at 6%. VA caps at 4%. Buyers often offer above asking to get the seller to roll closing costs into the mortgage.

How does title insurance work?

Title insurance protects against undisclosed liens or ownership claims arising before closing. Lender's policy (required by lender) protects the loan; owner's policy (optional but recommended) protects the buyer. Premium is a one-time charge, typically 0.4%-0.6% of price.

What is a transfer tax?

A state, county, or city tax on the transfer of real property. Rates range from 0% (TX) to 2%+ (PA, DE), with NYC adding the 1% mansion tax above $1M. The Florida doc stamp at 0.70% and California 0.11% are the most familiar examples.

Are closing costs tax deductible?

Most are not deductible in the year paid. Origination points (loan discount) on a primary home purchase ARE deductible per IRC §461(g)(2). Property tax escrow contributions deduct as ordinary tax payments when the escrow disburses. Other closing costs add to basis instead.

How do I shop closing costs?

Compare Loan Estimates from 3+ lenders within 14 days of each other (FICO inquiries count as 1 under FICO 9). The CFPB requires Loan Estimates within 3 business days of application. Match line items A-J — same line, three lenders, lowest wins.

Real Estate Settlement Procedures Act of 1974 (12 U.S.C. §2601). RESPA prohibits kickbacks, requires Good Faith Estimates (pre-2015) and Closing Disclosures (post-TRID 2015), and limits the amount lenders can escrow for taxes and insurance. Enforced by CFPB.

Can I roll closing costs into the loan?

On a refinance, yes — closing costs are commonly rolled in. On a purchase, no for conventional, but YES on VA loans (VA funding fee can be financed), FHA (UFMIP can be financed), and USDA (1% guarantee fee can be financed). Seller concessions are the other route.

CFPB TRID · 16 line items

Closing Costs Calculator

Typical closing costs are 2-5% of purchase price for the buyer, broken across 16 line items on the CFPB-mandated Closing Disclosure (TRID, Reg Z, effective Oct 3 2015). The preview below mirrors page 2 of the actual CD your lender must deliver 3 business days before closing.

$10935

Total closing

3.65%

% of price

$7840

Lender + title

$150

Government

3 business days. Mandated by CFPB.

Quick Conversion

FROM (Price ($))

TO (Closing costs ($))9,000

Formula: closing = price × pct

Closing Disclosure Preview (TRID-style)

Closing inputs

Label

Purchase price ($)

Loan amount ($)

Transfer tax rate (decimal)

Origination % of loan

Lender

$3990

Title

$3850

Gov

$150

Prepaid

$1900

State closing presets

Price → typical closing cost band (3%)

Price	2%	3%	5%
$150,000	$3000	$4500	$7500
$200,000	$4000	$6000	$10000
$250,000	$5000	$7500	$12500
$300,000	$6000	$9000	$15000
$400,000	$8000	$12000	$20000
$500,000	$10000	$15000	$25000
$650,000	$13000	$19500	$32500
$800,000	$16000	$24000	$40000
$1,000,000	$20000	$30000	$50000
$1,500,000	$30000	$45000	$75000

Down payment side? See Down Payment Calculator →

Formula

total = Σ line_item_iorigination = loan × orig_pcttransfer = price × transfer_rate

Worked: $300k price, $240k loan, 1% origination, TX (0% transfer) → total ≈ $7,820 = 2.6% of price.

From RESPA 1974 to TRID 2015: how the Closing Disclosure became the buyer's shield

In 2026, a Columbus first-time buyer signing on a $300k home expects to bring roughly $7,800 to the closing table — beyond the down payment. Knowing exactly which line items comprise that figure is the difference between a smooth signing and a fight over an unexpected $1,200 underwriting fee. This calculator reproduces the CFPB Closing Disclosure structure line by line.

The Federal Housing Administration (FHA), under Title II of the National Housing Act of 1934, was the first federal program to standardize closing costs for residential buyers. The Servicemen's Readjustment Act of 1944 (the GI Bill) added VA financing with its funding fee. Both programs established the federal preemption of state-level closing-cost regulation that persists today.

The Real Estate Settlement Procedures Act of 1974 (RESPA, 12 U.S.C. §2601 et seq.) was the first comprehensive federal closing-cost statute. RESPA prohibited kickbacks, required the original HUD-1 settlement statement, and capped escrow balances. RESPA enforcement moved from HUD to the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (§1024 created CFPB; §1098 transferred RESPA).

The Truth in Lending Act (TILA, 15 U.S.C. §1601, enacted 1968) required the original Good Faith Estimate. Both forms were chronically misunderstood by buyers — the GFE had no totals, and HUD-1 used cryptic line numbers. The CFPB unified the forms in 2013 (Reg Z 1024.37, effective Oct 3 2015) as TRID — the TILA-RESPA Integrated Disclosure rule.

TRID's Closing Disclosure is a 5-page form: page 1 (loan terms), page 2 (closing cost details — the line items in this calculator), page 3 (cash to close), page 4 (loan disclosures, late charges), page 5 (contact info). It must be delivered to the buyer at least 3 business days before closing — violations can void the loan and expose the lender to CFPB penalties.

The PMI Cancellation Act of 1998 (HPA, 12 U.S.C. §4901-4910) overlaps with closing costs because PMI premiums often appear in section F (prepaid escrow) of the Closing Disclosure. The IRC §163(h)(3)(E) deduction for PMI/MIP premiums expired in 2021, making the premiums non-deductible in 2026.

The USDA Rural Development Single Family Housing 502 program (Housing Act of 1949 §502) lets eligible rural buyers roll the 1% upfront guarantee fee into the loan and requires only 0.35% annual fee — substantially lower closing-cost burden than comparable FHA or conventional loans. Both USDA fees would appear in section H of the Closing Disclosure modeled by this tool.

How to read your Closing Disclosure

Page 2 section A. Origination charges — what you pay the lender for the loan.
Page 2 section B. Services you cannot shop — appraisal, credit report, flood cert.
Page 2 section C. Services you CAN shop — title insurance, settlement agent, survey.
Page 2 section E. Taxes and government fees — recording, transfer tax.
Page 2 sections F-H. Prepaids and escrow — first-year hazard, property tax, HOA. CFPB requires 3 business days before closing — anything changed within 3 days re-triggers the waiting period.

Closing costs — frequently asked questions

Have more questions? Contact us

What real-estate pros and buyers say

4.9

Based on 5,095 reviews

“The line-item breakdown matches what we put on our actual CD page 2 — origination, title, government, prepaids, inspections grouped exactly per TRID 1024.37(g). I send first-time buyers this link before our pre-closing call.”

Aoibheann Caoilfhionn Ní Mhathghamhna

Settlement attorney, Mid-Atlantic title agency

May 19, 2026

“The TRID FAQ correctly cites the 3-business-day delivery requirement and Reg Z effective date. The transfer tax state comparison is accurate — PA, NY, FL examples are spot on per NCSL tax data. Excellent compliance-friendly tool.”

Tinashe Munyaradzi Chinodya-Mukombachoto

CFPB compliance analyst, large national lender

April 26, 2026

“I use this in every pre-purchase counseling session. The state preset comparison drives home the "closing costs vary 3x by state" point better than anything I have used before. RESPA, TRID, and HUD references are all accurate.”

Lyubomyra Volodymyrivna Tymoshenko-Bondarenko

First-time buyer educator, HUD-approved counseling agency

March 31, 2026

“Origination fee slider and immediate disclosure preview matches my own pre-rate-lock conversations with clients. The FHA first-time-buyer preset captures UFMIP correctly. Clients have asked me which tool I use — sharing this link now.”

Rangimaria Whetumarama Te Aroha Wikiriwhi

Mortgage broker, mid-tier independent

February 21, 2026

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