How Much Are Closing Costs?
Published 2026 - 4 min read
Closing costs are the fees paid to finalize a mortgage. For buyers they usually total 2-6% of the loan amount, paid at settlement. On a $300,000 loan that is roughly $6,000 to $18,000 - real money worth planning for.
What buyers pay for
- Loan origination - the lender's fee, often about 1% of the loan.
- Appraisal and credit report - verifying the home and your file.
- Title search and insurance - protecting against ownership problems.
- Escrow prepaids - first year's insurance and property taxes.
What sellers pay for
Sellers usually cover the real estate commissions, transfer taxes and any agreed concessions. Many offers ask the seller to credit part of the buyer's closing costs.
Shop the fees
Every lender gives a Loan Estimate within three days of your application. Compare the "origination charges" line - title fees are set locally, but origination and points are negotiable.
Run the numbers
Use the closing costs calculator to estimate your total, and the affordability calculator to make sure you still qualify after adding cash to close.
Two rules keep closing costs from surprising you. First, ask every lender for a Loan Estimate and compare the same lines - origination charges and points vary, while third-party title fees are largely set by local rates. Second, remember that "cash to close" includes your down payment on top of the fees, so the money you need at the table is always bigger than the closing-cost estimate alone.
As a rough planning rule, expect 2-6% of the loan for buyer costs, but quotes vary widely by state and lender - so gather at least three Loan Estimates before choosing. The difference between the lowest and highest fee package on the same home is often thousands of dollars for identical work.