The specific mortgage product selected by the borrower. Note: Bank of America adjustable-rate mortgage ARM loans feature an initial fixed interest rate period typically 5, 7 or 10 years after which the interest rate becomes adjustable every six months for the remainder of the loan term. Lookup zip code layer. Expand all panels Get more information on closing costs , closed. Get more information on closing costs , open What are closing costs?
What is included in closing costs? Points Money paid to the lender, usually at mortgage closing, in order to lower the interest rate. Mortgage insurance For conventional loans, insurance that protects the lender if you default on your loan.
Escrow account An escrow account may be required to cover the future payments for items like homeowners insurance and property taxes. Origination fee A fee charged by a lender to cover certain processing expenses in connection with making a mortgage loan. Prepaid interest Prepaid interest represents funds for the initial payment of interest on your loan. Our calculator is unable to display your results. Schedule an appointment. Detailed information about this loan.
Loan amount The amount of debt, not including interest, being assumed by taking out a mortgage. Interest rate The cost of a loan to the borrower, expressed as a percentage of the loan amount and paid over a specific period of time. Principal and interest payment The principal is the amount of money being borrowed, also called the loan amount.
Annual percentage rate APR The cost of a loan to the borrower, expressed as a percentage of the loan amount and paid over a specific period of time.
Closing cost details. Total estimated closing costs Footnote 2. Amounts shown will differ from actual costs and may include seller-paid fees. Ready to apply for a mortgage? Get started with your mortgage application. Can I pay off my mortgage early? Home loan basics What about closing costs? ZIP code finder. Talk to. Connect with a lending specialist:. Change lending specialist. Find another loan officer to help you with a mortgage refinance.
No one likes to be surprised by a high utilities bill, or hit with an unexpected late fee. This is certainly true of buying a home.
Before taking on a mortgage and buying a house, most people want to know everything they can about how purchasing a home will impact their finances. While your lender is required to provide a Loan Estimate explaining your closing costs within three days of your submitting a loan application, that often occurs when you have already selected a home and are trying to finalize a deal.
In all, closing costs are a messy amalgam of variable fees. A closing costs calculator like ours lets you see closing costs based on the specifics of your financial situation. The government has come up with rules that lenders must follow when it comes time to reveal estimated closing costs to people who are shopping for a mortgage. The government-mandated closing costs form is called a Loan Estimate formerly known as a Good Faith Estimate. Some of these will be listed as Loan Costs. Of these costs, some carry a fixed price and some are services you can shop for if you want to try to get a better deal.
A financial advisor can aid you in planning for the purchase of a home. To find a financial advisor near you, try our free online matching tool. There are two categories of charges you pay your lender to secure your mortgage. These fees are very common, although not all lenders charge them to all borrowers.
In some cases, your lender will omit these fees to sweeten the deal, especially if you have really good credit. These fees should be incorporated into the APR stipulated for your loan. In other words, this means your lender is required to disclose them in advance. The bank needs to make sure the loan it is making is backed by a valuable asset; the government needs to make a record of the deal, and collect whatever fees and taxes are allowed by law; and someone needs to deal with all of the paperwork involved.
All that work can add up to a significant amount of money. This is only one component of your total closing costs, however. Read on for the rest. Government recording fees are charged by the local government usually the county for making a public record of the sale.
Transfer taxes, sometimes referred to as transfer charges, are what some state and local governments charge on home sale deals.
These vary widely by location, and in some places are not applied at all. One cost to the closing process comes from the amount you have to pay in advance for items you will be paying regularly as a homeowner.
Our closing costs calculator accounts for those as well. Other required pre-payments are made in advance to cover your first few weeks, months, or year in the house. This is the total of all your closing costs. It represents the sum of all your loan costs and all your non-loan costs.
Payment for closing costs can sometimes be financed with your loan, in which case it will be subject to interest charges. Alternatively, you can pay your closing costs in cash, similar to your down payment. Zoom between states and the national map to see the top counties in each region, and scroll over any county for more information. We considered various applicable closing costs, including the mortgage tax, transfer tax and both fixed and variable fees.
This calculation determined closing costs as a percentage of median home value in each county. Finally, we calculated a closing costs index based on the criteria above. Counties where closing costs accounted for the smallest percentage of the median home value ranked highest on the index. What is an Index Fund? How Does the Stock Market Work? What are Bonds? Investing Advice What is a Fiduciary? What is a CFP? I'm an Advisor Find an Advisor. Your Details Done. Your location will be used to find available mortgages and estimate closing costs.
Do this later Dismiss. Target Home Price. This will be used to help determine your mortgage amount. Down Payment. Mortgage amount is calculated by subtracting down payment from the target home price. A minimum down payment may be necessary based on the price of the home. Refresh My Rates. At closing, expect to pay any pro rata property taxes that are due from the date of closing to the end of the tax year.
This is a fee charged by the lender for guaranteeing you a certain interest rate locking in for a limited period of time, typically from the time you receive a preapproval until closing. It can run from 0. Here is another big fee: real estate commissions.
These fees can, however, be negotiated at times to make a deal happen. A recording fee may be charged by your local recording office, usually a city or county clerk's office, for the official processing of public land records. This third-party fee is to keep tabs on your property tax payments and to notify your lender of any issues with your property tax payments, such as late or failed payments. The cost changes depending on where you live and the company your lender employs.
This is a fee charged by the title company to analyze public property records for any ownership discrepancies. The title company searches deed records and ensures that no outstanding ownership disputes or liens exist on the property.
A transfer tax may be levied, depending on the jurisdiction, when the title is handed over from the seller to the buyer. The cost varies geographically. Underwriting fees are charged by the lender for the work that goes into evaluating your application and approving your loan.
Underwriting is the research process of verifying your financial, income, employment, and credit information for final loan approval. The amount of the funding fee depends on your military service classification and loan amount. It can be paid at closing or rolled into your mortgage. Some military members are exempt from paying the fee.
However, there are ways to negotiate these fees. This applies to lenders and third-party services, such as homeowners insurance policies and title companies. Do your homework and you could save some serious cash on those fees. A closing date near or at the end of the month helps cut down on prepaid daily interest charges. A lender can run this scenario for you to figure out how much you might save. This is more likely if the seller is motivated and the home has been on the market for a long time with few offers.
When you get your initial loan estimate, review it with a fine-tooth comb. Likewise, if you notice new fees or see noticeable increases in certain closing fees, ask your lender to walk you through the details. Ask the lender to remove or reduce fees if you notice duplication. Comparison shopping can be your ally in reducing closing costs, as well as finding competitive terms and rates.
Be especially wary of excessive processing and documentation fees in the following areas:. In some instances, lenders will offer to pay your closing costs or roll them into your loan. Do this only as a last resort. Closing costs are unavoidable when you buy a home. If you take proactive steps to shop around and closely analyze your loan estimate with your closing disclosure, you could save big bucks on those fees.
As you start saving up for a down payment, set aside enough money for closing costs as well. Remember that some areas of the country have higher closing costs than others. Above all, be your own best advocate. As you shop around, ask lenders to outline the fees they charge and try negotiating them down whenever possible.
Quicken Loans. Accessed Jan. Levin Law Group. GPS Law Group. American Financing. Rocket Mortgage by Quicken Loans. Department of Housing and Urban Development. Consumer Financial Protection Bureau.
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