Mortgage Closing Cost Calculator
Input the property purchase price or estimated property value (if you are refinancing) into our Mortgage Closing Cost Calculator to estimate the non-recurring closing costs for your mortgage when you purchase a home or refinance your mortgage. Non-recurring closing costs are one-time, up-front costs that the borrower pays to third parties to process and close the mortgage including lender, appraisal, title company, escrow and attorney (if applicable) fees. Closing costs are typically thousands of dollars and are very important for borrowers to review, in addition to the interest rate, when selecting a mortgage. Closing costs vary by mortgage size and program, geography and lender and you can use the FREEandCLEAR Mortgage Closing Cost Calculator to help you avoid paying excessive fees when getting a mortgage. You can also review our detailed explanation and example of mortgage closing costs.
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What You Should Know About Mortgage Closing Costs
Closing Costs Vary
Mortgage closing costs vary by lender, location, property value, mortgage amount and mortgage program. Closing costs are typically higher for larger mortgages on more highly valued homes. Lenders fees also vary and lenders may use different terminology for the fees they charge. Because mortgage closing costs vary and can run thousands of dollars, borrowers should shop multiple lenders to find the mortgage with the best terms. Please note that there is usually a trade-off between the mortgage rate and closing costs quoted by lenders with the higher the closing costs, the lower the mortgage rate. To compare mortgage quotes borrowers should request a Loan Estimate document from each lender that outlines key mortgage terms such as interest rate and closing costs. Borrowers can use the Loan Estimate to find the lender offering the mortgage with the lowest closing costs and interest rate.
Recurring Versus Non-Recurring Closing Costs
There are two types of mortgage closing costs: recurring and non-recurring. Recurring closing costs are costs that borrowers continue to pay after the mortgage closes such as partial interest expense, homeowners insurance and pro-rated property tax. Borrowers are required to pay a portion of these costs when their mortgage closes. The amount of recurring closing costs primarily depends on when your mortgage closes so it can be difficult to estimate these costs up-front. Non-recurring closing costs are one-time fees borrowers pay to the lender, settlement / escrow agent, title company, appraiser and other third parties to process and close your mortgage. Non-recurring closing costs should be outlined up-front before you select a lender for your mortgage and are subject to negotiation because they are set by the lender and other third party service providers. For example, you may be able to negotiate a lower lender origination fee or appraisal report fee. Borrowers should compare and negotiate non-recurring closing costs across multiple lenders to reduce their expenses when they get a mortgage.
Can You Include Closing Costs in Your Mortgage Amount
Borrowers are not permitted to include most closing costs in their mortgage amount for home purchase loans but you can include closing costs in your loan amount for refinancings. For example, with a no cost refinance all non-recurring closing costs are added to your new mortgage. A no cost refinance, however, charges a higher interest rate than a mortgage with standard closing costs. Prospective home buyers with limited funds should consider Closing Cost Assistance Programs which help eligible borrowers pay for part or all of their mortgage closing costs through a grant.
More FREEandCLEAR Mortgage Resources
Reivew our comprehensive, item-by-item breakdown of mortgage closing costs
Review insightful tips to help you lower your mortgage closing costs from a mortgage expert with over 40 years of experience
Compare closing costs and mortgage rates for top lenders near you. Comparing proposals from multiple lenders is the best way to find the mortgage with the lowest closing costs and interest rate
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