Down payment
The portion of the purchase price paid from your own funds rather than financed through the mortgage.
Homebuyer guide
Closing costs, explained without the clutter.
Closing costs are the charges and prepaid amounts connected with completing a home purchase and establishing the loan. The exact amount depends on the transaction, loan, property, location, providers, and closing date.
The four-part picture
What may contribute to cash needed at closing.
Closing charges
Costs associated with the loan, title or settlement work, valuation, recording, and other transaction services.
Prepaids and escrow deposits
Amounts collected for items such as interest, homeowners insurance, property taxes, or initial escrow reserves.
Common categories
Costs vary, but the categories are familiar.
Loan and lender-related charges
These may include origination, underwriting, processing, credit, rate-lock, discount-point, or other lender charges. Actual names and amounts depend on the lender and loan program.
Title, settlement, and attorney charges
These may cover title search, title insurance, settlement or escrow services, document preparation, and attorney involvement where customary or required.
Government recording and transfer charges
Recording fees and transfer-related taxes or charges may depend on the state, county, municipality, document count, transaction value, or local rules.
Property and inspection-related costs
Appraisal, home inspection, survey, pest inspection, HOA transfer, or other property-related services may occur before or at closing.
Prepaid expenses and initial escrow
These may include prepaid interest, the first insurance premium, property-tax adjustments, and initial reserve deposits collected by the lender.
Credits and adjustments
Not every cost is paid entirely by the buyer.
Seller credits, lender credits, deposits already paid, tax prorations, and negotiated responsibility may change the net amount due. Credits should remain separate from charges so the estimate is easier to understand.
Estimate vs final amount
Why final numbers may differ.
- The closing date changes prepaid interest or prorations.
- The selected lender or provider charges different fees.
- Local recording or transfer charges differ from baseline estimates.
- Insurance, taxes, or escrow requirements change.
- Credits, repairs, or negotiations are added.
- The loan structure or purchase terms change.
Use the guide with the calculator
Enter what you know, review what is estimated, and replace uncertain figures with verified costs as they become available.