Closing costs by Loan Estimate section, and the cash you need to close
Updated 2026-10-02
Closing costs are the lender fees, third-party services, government recording charges, prepaid interest and insurance, and escrow deposits you pay when a mortgage closes, on top of the down payment. Enter the price, down payment and your lender's fees to see each group as it appears on the Loan Estimate, the total, and the cash you need to close. see what price fits your budget · check whether points pay off · see the monthly payment.
Your purchase and fees
Your closing costs
Cash to close
$52,205
$40,000 down + $12,205 costs
Total closing costs
$12,205
3.4% of the $360,000 loan
Lender fees and points
$3,600
+ $4,600 services and recording
Prepaids and escrow
$4,005
$705.21 interest for 11 days
Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.
Services and government fees: the appraisal, title and settlement, recording and transfer taxes and other fees you enter.
Prepaid interest: your first payment is due a month after the first full month, so at closing you pay interest for the rest of the closing month.
Prepaid interest = loan × rate ÷ 365 × (days in month − closing day + 1)
Prepaid insurance: the first year of homeowners insurance, usually paid at closing.
Initial escrow deposit: a cushion of property tax and insurance so the escrow account can pay the first bills: annual tax × months ÷ 12 + annual insurance × months ÷ 12. How many months depends on your due dates and the lender.
Cash to close = down payment + closing costs − credits
Worked example
A $400,000 home with 10% down means a $360,000 loan. A 1% origination fee is $3,600. Appraisal ($600), title and settlement ($2,500), recording and transfer taxes ($1,000) and other fees ($500) add $4,600. Closing on the 20th of a 30-day month at 6.5% means 11 days of prepaid interest, $705.21; the first year of insurance is $1,800, and an escrow deposit of three months of tax and two of insurance is $1,500. Closing costs total $12,205.21 (3.4% of the loan), and with the $40,000 down payment the cash to close is $52,205.21.
Lowering the cash you need
Compare Loan Estimates from several lenders on the same day: origination charges and points differ the most.
You can often shop for title and settlement services; the Loan Estimate lists which ones.
Closing later in the month means fewer days of prepaid interest, but it doesn't change the total interest you pay over the loan.
A seller credit or a lender credit reduces cash to close; a lender credit usually comes with a higher rate, so check it with the points calculator.
Amounts vary by lender, state and county, so replace the example numbers with your own. This is an estimate for planning, not a quote.
Closing day and moving in
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How much cash do I need to close on a $400,000 house?
It depends on the down payment and your lender's fees. In the example — 10% down ($40,000), a 1% origination fee, $4,600 of third-party and recording fees, 11 days of prepaid interest at 6.5%, a year of insurance and a few months of escrow — closing costs are $12,205 and cash to close is $52,205.
What is included in closing costs?
Lender charges (origination fee and any discount points), third-party services such as the appraisal and title insurance, government recording fees and transfer taxes, prepaid items (interest from closing to the end of the month and usually the first year of homeowners insurance), and the first deposit into your escrow account for property tax and insurance.
How is prepaid interest calculated at closing?
Your first mortgage payment covers the previous month's interest, so at closing you pay interest from the closing day to the end of that month: loan × rate ÷ 365 × days. On a $360,000 loan at 6.5%, closing on the 20th of a 30-day month is 11 days, or $705.21. Some lenders use a 360-day year.
Can closing costs be rolled into the loan or paid by the seller?
Sometimes. A seller can agree to pay some costs as a seller credit, and a lender can give a lender credit in exchange for a higher rate. Enter any credits to see the lower cash to close. Loan programs limit how much a seller can contribute.
Where do I find my real closing costs?
In the Loan Estimate your lender must give you within three business days of your application, and then in the Closing Disclosure at least three business days before closing. The sections in this calculator follow the same order so you can compare line by line.
Why is cash to close more than my down payment?
Because closing costs, prepaids and the escrow deposit are paid at the same time as the down payment. Earnest money you already paid is credited toward the total.
