Closing Cost Calculator for Buyers (All 50 States) 2022 | Casaplorer

Closing Cost Calculator for Buyers

Trusted & Transparent CASAPLORER What country do you live in ?

Home Price

$

Down Payment

%

=

$

result total Amount Required at Closing

$ 91,478

Closing Cost Calculation

Fixed Costs

$ 2,053

+ variable Costs

$ 9,425

= total close Costs

$ 11,478

Fixed Closing Cost

$ 2,053 full Fixed price Fixed Closing Cost Breakdown :

Appraisal Fee

$

property tax

$

Prepaid Interest

$

HOA Fees

$

sum Fixed conclusion monetary value $ 2,053

Variable Closing Cost

$ 9,425 total varying cost variable close Cost Breakdown :

Home Inspection Fee

$

Homeowners Insurance

$

Application Fee

$

Credit Report Fee

$

Lawyer Fee

$

Loan Origination Fee

$

championship policy

$

Title Search Fee

$

dismiss Points

$

Upfront MIP

$

FHA, VA & USDA Loan Fees

$

total Variable close cost $ 9,425

Our shutting costs calculator determines your full close up costs when you purchase a home. conclude costs will include all the expenses such as lender fees & third-party fees which will help you estimate the entire funds that will be required at close. close costs range from 2 % to 5 % of the loan come, however, they can vary significantly as there are several expenses that you can shop around for and get a better deal, along with the sterilize costs which do not change .

What are closing costs?

closing costs are the total fees that are paid for the services required when you purchase a fresh home or refinance your existing home plate. conclude costs are normally paid by the buyer of the home, but the seller pays some close costs in the form of real-estate perpetration. close costs will include expenses such as property-related charges, lender fees, policy costs and any other costs that are incurred to finalize the mortgage. Some of these expenses are fixed such that they are the lapp for anyone buying a similar valued home, for example, property taxes. On the other bridge player, some of the expenses you can shop around for and get a lower tip, for example, home inspection fee or lawyer costs. When you apply for the mortgage, your lender is required to provide you the Loan Estimate document which will include an sketch of the close costs. once the mortgage is approved and the deal has gone through, a few days before the colonization date, the lender will give you the Closing Disclosure document which will show all the close costs that will have to be paid .

How much are closing costs?

conclusion costs are different for all home buyers as they are dependant on the price of the home, location, and other fees. All these factors make it very difficult to accurately determine close costs, however, the average sum closing costs for most buyers is 2 % to 5 % of the loan amount. For model, on a $ 400,000 lend, you can expect close costs to be anywhere from $ 8,000 to $ 20,000. This range is very big and may not be utilitarian. consequently, our close cost calculator can provide a much closer estimate as our calculator determines the person costs based on your specific situation. The best way to pay close costs is upfront as most of the costs are a erstwhile expense and are not recurring through the mortgage. If the lender permits, you can besides choose to pay the completion costs by financing it into the mortgage sum, however, this is not advisable as you will be paying interest on these costs. Another manner to lower shutting costs and broadly the cost of buying a theater is to look for government aid programs such as the Homes for Heroes platform. several states have first-time dwelling buyer programs that can assist you with closing costs and meet minimum down requital requirements .

Map of Closing Costs Across All 50 States

Less than $ 2,499 $ 2,500 to $ 3,499 $ 3,500 to $ 4,499 $ 4,500 to $ 6,499 $ 6,500 to $ 12,499 $ 12,500 to $ 25800 US states ranked by average close costs ( including taxes ) as reported by ClosingCorp in 2019.

States With the Highest and Lowest Closing Costs

Which states have the highest close costs and the lowest close costs in the United States ? According to ClosingCorp, the District of Columbia ( D.C. ) has the highest average total shutting costs with taxes in the U.S. at $ 25,800. This means that a homebuyer looking to purchase a home in Washington D.C. will need to have $ 25,800 to cover close costs, and that does n’t even include the down payment ! That makes up 4 % of the average sales price, which is below the 4.88 % in Pennsylvania.

States With the Highest Average Closing Costs for Homebuyers

State Average Closing Costs with Taxes % of Average Sales Price
District of Columbia (D.C.) $25,800 4.00%
Delaware $13,273 4.72%
New York $12,847 3.05%
Washington $12,406 2.86%
Maryland $11,876 3.65%

When looking at the state with the lowest buyer close costs, Indiana is the bum at fair $ 1,909, or 0.99 % of the average base sales price. For the lowest close costs as a percentage of the sales price, the cheapest states are Wyoming and Colorado, which are tied at 0.86 %.

States With the Lowest Average Closing Costs for Homebuyers

State Average Closing Costs with Taxes % of Average Sales Price
Indiana $1,909 0.99%
Montana $2,063 1.02%
South Dakota $2,159 1.19%
Iowa $2,194 1.27%
Kentucky $2,276 1.32%

Who pays closing costs?

close costs are in most cases paid by the buyer of the house. There are situations where the seller covers some of the conclude costs if it is a buyer ’ randomness market and the negotiations lead to close costs being divided. If it is a buyer ’ sulfur commercialize where there are excess sellers and fewer buyers or if the seller is in a first-come-first-serve to sell, closing costs can be used as a bargaining chip by the seller in holy order to make the sale go through. In these situations, the seller might agree to pay some of the close costs, known as seller-paid close costs .

How to calculate closing costs?

close costs calculations are simpleton. You first estimate the amount for respective costs required during closure and you sum them up to determine your total close costs. If you have the actual values, you can then use those to determine the accurate measure that will be required.

Example

For exemplar, how much are closing costs on a house with a price of $ 400,000 with an $ 80,000 down requital in New York ?

Negotiable Fees: Services You Can Shop For

  1. Home Inspection Fee – $450
  2. Application Fee – $350
  3. Credit Report Fee – $25
  4. Lawyer Fee – $1000
  5. Loan Origination Fee – $4,000 (0.1% of Loan Value)
  6. Discount Points – $0
  7. Title Insurance – $2,000 (0.5% of Home Price)
  8. Homeowners Insurance – $1,600
  9. Title Search Fee – $600
  10. Upfront Mortgage Insurance Premium (MIP) – $0
  11. FHA, VA & USDA Loan Fees – $0

full negotiable Costs = $ 8,425

Fixed Fees: Services Where the Cost Does Not Change

  1. Appraisal Fee – $350
  2. Prepaid Interest – $448 (0.14% of Loan Value)
  3. Property Tax – $1,127 (1.69% tax rate for New York)
  4. HOA Fees – $400

sum Fixed Costs = $ 3,925 sum closing Costs = $ 12,350 closing Costs as a percentage of Loan Value = 3.85 % ( $ 12,350/ $ 320,000 * 100 ) total Cash Amount Required at Closing = $ 92,350 ( $ 12,350 Total close Costs + $ 80,000 Down Payment )

What is included in closing costs?

Closing costs can be divided into four main price segments with each having its own subset of fees. Some of the fees are fixed, such that their cost does not change from position to situation. however, a majority of the fees are variable star, which means you can shop around different providers to get the lowest cost volunteer .

Closing Costs Summary Table

specific Fee or Expense Fixed or variable
Property-related Fees Appraisal Fee Fixed
Home Inspection Fee Shop
Title Search Shop
Title Insurance Shop
Mortgage-related Fees Credit Report Fee Shop
Application Fee Shop
Loan Origination Fee Shop
Legal Fee Shop
Discount Points Shop
Prepaid Interest Fixed
mortgage insurance Fees Upfront Mortgage Insurance Shop
FHA, VA & USDA Loan Fees Shop
annual Fees Property Taxes Fixed
Homeowners Insurance Shop
HOA Fees Fixed

Property Related Fees

  1. Appraisal Fee– An appraisal is required by the lender to determine the value of the property and the amount that needs to be borrowed. The appraisal fee is around $350.
  2. Home Inspection Fee– This fee is used to determine if the property meets safety and quality standards. Home inspection fees can range from $350 – $600, our calculator assumes $450.
  3. Title Search– If the property being purchased is not new, then a title search is required to ensure there are no issues of ownership or liens. Title search fees can range from $400 – $800, our calculator assumes $600.
  4. Title Insurance – Lenders will require you to get title insurance to ensure that if a situation arises where your ownership is disputed, they can recoup their loan. Title insurance can range from 0.5% – 1% of the home price, our calculator assumes 0.5%.

Mortgage-Related Fees

  1. Credit Report Fee – The lender uses this fee to obtain your credit report. It costs about $25.
  2. Application Fee– Processing the application has a fee of $350.
  3. Loan Origination Fee– This fee is one of the largest, and it is also known as the underwriting or processing fee. It involves preparing and evaluating your mortgage such as notary fee, documentation, checking your financial records, verifying information, and the service provided during the entire process. The fee can change depending on the lender, and hence, it is very important to shop around and find the lowest-cost lender. The fee can range from 0.5% – 1% of the loan value, our calculator assumes 0.75%.
  4. Legal Fee– A lawyer is required at closing to verify all the documents, with legal fees charged hourly. Fees can range from $600 – $1300, our calculator assumes, $1,000.
  5. Discount Points – Points can be bought which can in turn help reduce your mortgage rate. One point can be bought for 1% of the loan amount and it lowers your mortgage rate by 0.25%. For example, if your loan amount is $300,000 at a mortgage rate of 3.25%, you can buy 1 point for $3,000 ($300,000 * 1%) and reduce your mortgage rate to 3% (3.25% – 0.25%). Use our mortgage points calculator to see how points will affect your mortgage
  6. Prepaid-Interest– Lenders will require you to pay any interest that is charged from the date of settlement to the first monthly mortgage payment. Prepaid interest can vary based on the number of days interest has to be paid, our calculator assumes 0.14% of the loan amount.

Mortgage Insurance Fee

  1. Upfront Mortgage Insurance– If the down payment is less than 20% of the home value, then the lender will require you to get private mortgage insurance (PMI). PMI can be financed into the mortgage, or it can be paid upfront.
  2. FHA, VA & USDA Fees– Government-backed loans have initial costs that have to be paid. FHA loans require FHA Mortgage Insurance Premium (MIP) which is 1.75% of the loan amount. VA loans have the VA funding fee and USDA loans have guarantee fees.

Annual Fees

  1. Property Taxes – You will be required to pay two months of property taxes. The property rate will be dependent on your location.
  2. Homeowners Insurance

    – Lenders will require you to get insurance against potential damages. In most cases, 12 months of insurance is paid upfront, our calculator assumes a cost of 0.4% of the home price.

  3. Homeowners Association ( HOA ) – Some condominium associations have fees for maintenance and improving the public condominium property and amenities.

How do I reduce my closing costs?

close costs are an significant monetary value in the action of buying a home and getting a mortgage. There are a few costs that are fixed, but a majority of them are variable where shopping around can get you a better deal. One of the largest shutting costs is lender fees, specially origin charges, which can be conclude to 1 % of the lend amount. This is where you can in truth try to save money. By shopping about for different lenders and with proper negotiations, these fees can be brought down significantly. There are a host of other variable fees where proper inquiry and negotiation can save you a set of money .

No-Closing-Cost Mortgages

Did you know that you can get a mortgage loanword or refinance your existing mortgage without having to pay any close up costs upfront ? Some banks and lenders offer no-closing-cost mortgages and no-closing-cost refinances. With this special character of loan, the lender bundles the close costs of your mortgage directly into your principal balance. This means that you can pay the conclusion costs over fourth dimension alternatively of having to pay them all upfront at close. however, no-closing-cost mortgages typically have a higher mortgage interest rate compared to conventional mortgages. This means that you will be paying more interest over fourth dimension. however, no-closing-cost mortgages are still a desirable alternate for borrowers that might not have enough savings to cover close costs today, and can be a lower-interest cost option compared to alternatives such as getting a personal loan to pay for buyer close costs .

reference : https://www.peterswar.net
Category : Finance

Related Posts

How to Calculate Credit Card Interest Rates

interest rates are one of the ways to work out how much it will cost you to use your credit card, along with other charges and fees….

What debt collectors can & cannot do

If you are dealing with a debt collector, you have protections under the law. A debt collector must not mislead, harass, coerce or act unconscionably towards you….

Can You Afford a New Home? How to Determine Your Homebuying Budget

Can You Afford a New Home? How to Determine Your Homebuying Budget As with any major purchase, determining what you can afford before you look for a…

Why Did My Credit Score Drop?

Why Did My Credit Score Go Down When Nothing Changed? sometimes your mark does change based on factors outside of your control, but most times your behavior…

Why Do I Owe Taxes To The IRS & How To Avoid Them

Are you wondering why you owe indeed much in taxes this year ? Want to make certain you never owe a big tax bill – or any…

The 5 reasons why your credit score might suddenly drop

Select ’ s editorial team works independently to review fiscal products and write articles we think our readers will find useful. We earn a perpetration from affiliate…