Closing costs are the various fees and expenses a borrower incurs when obtaining a mortgage loan to purchase or refinance a property. These costs are separate from the down payment and loan principal and are typically due at the closing of the transaction. While they can add up, understanding each component can help you budget effectively and negotiate where possible.
The calculation of closing costs involves a combination of fixed fees, percentage-based fees, and sometimes prorated amounts. This calculator helps estimate these costs based on common line items.
Key Components of Closing Costs:
Loan Origination Fee: This is a fee charged by the lender for processing the loan application. It's often expressed as a percentage of the total loan amount. For example, a 1% origination fee on a $250,000 loan would be $2,500.
Appraisal Fee: Lenders require an appraisal to determine the fair market value of the property. This fee typically ranges from $300 to $700, depending on the complexity and location.
Credit Report Fee: This covers the cost of obtaining your credit report and score, which lenders use to assess your creditworthiness. It usually costs between $30 and $50.
Title Insurance Fee: This protects the lender (and potentially the buyer) against any future claims on the property's title. The cost varies significantly based on the loan amount and location, often ranging from $1,000 to $3,000 or more.
Escrow Fee: This is charged by the escrow company or attorney for handling the closing process. It covers their services in managing the transfer of funds and documents. Fees can range from $200 to $600.
Recording Fee: Charged by the local government (county or city) to record the deed and mortgage in public records. This is usually a relatively small fee, often between $50 and $200.
Survey Fee: In some cases, a survey may be required to confirm property lines and boundaries. This can cost between $300 and $600.
Flood Certification Fee: This fee verifies whether the property is located in a flood-prone area, which could affect homeowners insurance requirements. It's typically around $15 to $30.
How the Calculator Works:
This calculator sums up the individual fees you input. For percentage-based fees like the loan origination fee, it calculates the amount by multiplying the fee percentage by the loan amount.
It's important to note that this is an estimate. Actual closing costs can vary significantly based on your lender, location, the specifics of the transaction, and negotiations. Always review your Loan Estimate and Closing Disclosure documents carefully for the most accurate breakdown of your closing costs.
function calculateClosingCosts() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var loanOriginationFeePercentage = parseFloat(document.getElementById("loanOriginationFeePercentage").value);
var appraisalFee = parseFloat(document.getElementById("appraisalFee").value);
var creditReportFee = parseFloat(document.getElementById("creditReportFee").value);
var titleInsuranceFee = parseFloat(document.getElementById("titleInsuranceFee").value);
var escrowFee = parseFloat(document.getElementById("escrowFee").value);
var recordingFee = parseFloat(document.getElementById("recordingFee").value);
var surveyFee = parseFloat(document.getElementById("surveyFee").value);
var floodCertificationFee = parseFloat(document.getElementById("floodCertificationFee").value);
var totalClosingCosts = 0;
// Validate inputs and add to total
if (!isNaN(loanAmount) && loanAmount > 0) {
if (!isNaN(loanOriginationFeePercentage) && loanOriginationFeePercentage >= 0) {
var originationCost = (loanAmount * loanOriginationFeePercentage) / 100;
totalClosingCosts += originationCost;
}
} else {
alert("Please enter a valid Loan Amount.");
return;
}
if (!isNaN(appraisalFee) && appraisalFee >= 0) {
totalClosingCosts += appraisalFee;
}
if (!isNaN(creditReportFee) && creditReportFee >= 0) {
totalClosingCosts += creditReportFee;
}
if (!isNaN(titleInsuranceFee) && titleInsuranceFee >= 0) {
totalClosingCosts += titleInsuranceFee;
}
if (!isNaN(escrowFee) && escrowFee >= 0) {
totalClosingCosts += escrowFee;
}
if (!isNaN(recordingFee) && recordingFee >= 0) {
totalClosingCosts += recordingFee;
}
if (!isNaN(surveyFee) && surveyFee >= 0) {
totalClosingCosts += surveyFee;
}
if (!isNaN(floodCertificationFee) && floodCertificationFee >= 0) {
totalClosingCosts += floodCertificationFee;
}
// Format the result
var formattedClosingCosts = totalClosingCosts.toFixed(2);
document.getElementById("result-value").innerText = "$" + formattedClosingCosts;
}