Home Buying Costs Calculator

Calculate the total cash you need to close — down payment, closing costs, prepaid expenses, PMI, and post-closing reserves — plus your estimated monthly payment and whether you qualify. No surprises at the closing table.

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Results

Calculated
Total cash to close
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Down payment + closing + prepaids
Total savings needed
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Closing + reserves you must keep
Monthly mortgage payment
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P&I + taxes + insurance + PMI
Front-end DTI
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Housing ÷ gross income (limit: 28%)
Back-end DTI
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All debts ÷ gross income (limit: 43%)
Affordability verdict
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Down payment
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Equity at purchase
Closing costs
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Lender + third-party fees
Prepaid expenses
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Insurance, taxes, interest buffer
Monthly PMI
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Until 20% equity reached
Loan amount
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What you'll borrow
Net cash needed (after concessions)
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After any seller contribution
Full Cost Breakdown
Item Amount Notes
Monthly Payment Breakdown

What first-time buyers consistently underestimate

The down payment is the number everyone plans for. The closing costs and prepaid expenses — which typically add another 2–5% of the purchase price on top of the down payment — are what catch buyers off guard. On a $400,000 home with 10% down ($40,000), total cash at closing often runs $55,000–$65,000 once closing costs and prepaids are included. This calculator breaks every line item down so nothing is a surprise.

The three buckets of cash at closing

Down payment is the equity you bring — 3.5% minimum for FHA, 5–20% for conventional, 0% for VA and USDA. This is the largest single item for most buyers.

Closing costs are fees paid to the lender and third parties to originate the loan, verify the title, and transfer ownership. They typically run 2–3% of the loan amount. These include:

  • Lender fees: origination, points, credit report, appraisal
  • Title and escrow: title insurance (lender and owner policies), title search, escrow/settlement fee
  • Government fees: recording fees, transfer/stamp taxes (varies dramatically by state — from 0% in Texas to 3%+ in Vermont)
  • Third-party services: home inspection, survey, attorney (required in some states)

Prepaid expenses are not fees — they're money you'd spend anyway, just moved up to closing. The lender requires you to fund an escrow account with property tax and insurance reserves, pay the first year of homeowners insurance upfront, and cover interest from the closing date to your first mortgage payment.

How to reduce closing costs

  • Shop lenders: Origination fees and points vary significantly. Compare Loan Estimates from 3+ lenders — they're required to give you one within 3 days of application.
  • Negotiate seller concessions: In buyer's markets, sellers sometimes pay 2–3% of closing costs. This is especially useful on FHA loans where cash is tight.
  • Ask about lender credits: Taking a slightly higher interest rate in exchange for lender credits can eliminate upfront costs — useful if you plan to sell or refinance within 5–7 years.
  • Close at end of month: Prepaid interest covers the days between closing and your first payment. Closing on the 28th–31st minimizes this amount.
  • State programs: Many states offer first-time buyer assistance for closing costs. Check your state's housing finance agency.

Rule of thumb: Budget 2–5% of purchase price for closing costs + prepaids, on top of your down payment.

Example: $400K home, 10% down → $40K down + $12K–$20K closing/prepaid = $52K–$60K total at closing.

Loan type differences at closing

Conventional loans have no upfront mortgage insurance. If your down payment is under 20%, you'll pay monthly PMI until you reach 20% equity, but nothing upfront.

FHA loans require a 1.75% upfront mortgage insurance premium (MIP) added to closing costs, plus monthly MIP regardless of down payment size. This makes FHA cost more at closing despite the lower down payment requirement.

VA loans have no down payment requirement and no monthly mortgage insurance, but most borrowers pay a 2.3% funding fee at closing (waived for disabled veterans). Even so, VA is often the least expensive loan type for eligible borrowers.

Jumbo loans (above conforming limits — $766,550 in most counties in 2024) typically require 10–20% down and carry higher origination fees.

Frequently Asked Questions

Can closing costs be rolled into the mortgage?
Usually not directly — closing costs are due at closing and can't typically be added to the loan balance on a purchase. However, you can effectively "roll them in" by taking a higher interest rate in exchange for lender credits that cover closing costs, or by asking the seller to contribute toward costs. On refinances, rolling closing costs into the new loan is common and straightforward.
What's the difference between closing costs and prepaids?
Closing costs are one-time fees for services — appraisal, title insurance, origination. You pay them once and they're done. Prepaid expenses are ongoing costs you're paying early: the first year of homeowners insurance, property tax reserves (to seed the escrow account), and interest that accrues before your first mortgage payment. Prepaids aren't lost money — they're your own funds sitting in escrow paying bills you'd owe anyway.
How accurate is this estimate?
This calculator uses typical national rates for most line items but your actual closing disclosure will differ based on your lender's fees, your specific location's transfer tax rate, your actual insurance quote, and the timing of your closing. Use this as a planning estimate, then compare it to the Loan Estimate your lender provides — federal law requires them to provide one within 3 business days of your loan application, and the final costs can't deviate significantly from it.
Do I need cash reserves beyond closing costs?
Most lenders require you to have 2–6 months of mortgage payments left in reserve after closing — this is separate from what you pay at closing. A $2,000/month mortgage means you'd need $4,000–$12,000 still in the bank after closing. This protects against job loss or unexpected expenses. Some loan programs and lender guidelines require more; jumbo loans often require 12 months of reserves.