Use this **buyer closing costs calculator Virginia** tool to estimate the total funds required to close on a property in the Commonwealth of Virginia. Closing costs typically range from 2% to 5% of the loan amount, but this estimate provides a detailed breakdown of lender, title, and governmental fees.
Virginia Buyer Closing Costs Calculator
Buyer Closing Costs Calculator Virginia Formula
This calculator estimates total closing costs (CC) based on three main components: Lender/Title Fees (LTF), Prepaid Items (PP), and Governmental Charges (GC).
CC = LTF + PP + GC
LTF = Loan Origination Fee + Title Search + Title Insurance (Owner's & Lender's)
PP = 1 Year Home Insurance Premium + Prepaid Interest + Tax/Insurance Escrow Reserves
GC = Virginia Recordation Tax + Recording Fees
Variables Explained
- Purchase Price ($): The negotiated final price of the home. Used as the basis for calculating the loan amount and certain title insurance premiums.
- Down Payment Percentage (%): The percentage of the purchase price the buyer is paying upfront. This directly determines the size of the mortgage loan.
- Annual Property Tax ($): The total property tax due for one year in your specific Virginia county. This is used to calculate prorations and the required escrow reserve setup.
- Annual Home Insurance Premium ($): The yearly cost for the mandatory hazard insurance required by the lender. Used for the 1-year prepaid premium and escrow reserves.
Related Calculators
Explore these related financial tools:
- Virginia Mortgage Payment Estimator
- Refinance Break-Even Point Calculator
- Debt-to-Income (DTI) Ratio Calculator
- Maximum Affordable Home Price Calculator
What is Buyer Closing Costs Calculator Virginia?
The closing costs represent the various fees charged by the lender, title company, and local government to facilitate a real estate transaction. In Virginia, these costs are typically paid by the buyer (except for the Grantor’s Tax, which is usually the seller’s responsibility). Understanding these fees is critical for budgeting, as they are paid upfront in addition to the down payment.
Virginia’s closing costs are heavily influenced by local taxes and recording fees, especially the **Recordation Tax** and **Mortgage Tax**, which are calculated based on the loan amount. Our calculator uses standard regional estimates for professional services like title searches and settlement fees, providing a comprehensive, realistic estimate for a buyer preparing for closing in the Commonwealth.
How to Estimate Virginia Closing Costs (Example)
- Determine Loan Amount: Subtract the Down Payment from the Purchase Price. (e.g., $400,000 Purchase – 20% DP = $320,000 Loan).
- Estimate Lender & Title Fees: Calculate the Loan Origination Fee (e.g., 1% of $320,000 = $3,200). Add estimated costs for Title Search, Settlement, and Title Insurance ($1,200 + $1,800). Total: $6,200.
- Calculate Government Charges: Apply the state Recordation Tax to the loan amount (e.g., $320,000 / 100 * $0.15 = $480). Add Recording Fees (e.g., $300). Total: $780.
- Calculate Escrow Reserves & Prepaids: Divide the Annual Property Tax ($4,800) and Annual Insurance ($1,200) by 12. Reserve 3 months of each. Add 1 year of prepaid insurance and estimated prepaid interest.
- Sum the Components: Add the Loan/Title Fees, Government Charges, and Prepaid/Escrow amounts to get the Estimated Total Closing Costs.
Frequently Asked Questions (FAQ)
What is the typical closing cost percentage in Virginia? Virginia closing costs for the buyer generally range from 2% to 5% of the total loan amount, though cash buyers may pay less since they avoid lender and mortgage-related fees.
Does the Virginia Recordation Tax go to the state or county? The Recordation Tax (or Mortgage Tax) is collected by the local Circuit Court Clerk’s office at closing, and the funds are distributed to both the state and local governments. The rate varies slightly by jurisdiction.
Are attorney fees included in the estimate? Yes, the “Settlement Fee” in our estimate generally covers the costs associated with the settlement agent or attorney who conducts the closing and ensures all documents are correctly filed.
What is prepaid interest? Prepaid interest is the mortgage interest accrued from the closing date through the end of the month in which you close. It is required to be paid upfront at closing.