Use this **US Bank Closing Cost Calculator** to estimate the total upfront fees and expenses you will need to pay when closing on a mortgage loan, including lender fees, third-party services, and prepaid items.
US Bank Closing Cost Calculator
Estimated Total Closing Costs
$0.00Detailed Calculation Steps
US Bank Closing Cost Calculator Formula
Total Closing Costs = (Lender Fees) + (Third-Party Fees) + (Prepaids & Escrow)
Where:
Lender Fees = Loan Principal × Origination Fee %
Third-Party Fees = Appraisal Fee + Title/Settlement Fee + Other External Costs
Prepaids & Escrow = Prepaid Insurance + Est. Property Tax Deposit (e.g., 3 Months)
Variables Explained
- Loan Principal Amount: The primary amount borrowed to purchase the property.
- Lender Origination Fee: A fee charged by the lender (e.g., US Bank) for processing the loan, typically 0.5% to 1.5% of the loan amount.
- Appraisal Fee: The cost of having a certified appraiser evaluate the property’s value.
- Title & Settlement Fee: Combined fees for title insurance, settlement agent, escrow, and recording the deed.
- Prepaid Homeowner’s Insurance: The cost of the first year of property insurance, paid at closing.
- Est. Monthly Property Tax: Your estimate of the monthly property tax bill, used to calculate the initial escrow deposit.
What are US Bank Closing Costs?
Closing costs are the expenses, beyond the property’s price, that buyers and sellers incur to finalize a real estate transaction. When securing a mortgage from a major lender like US Bank, these costs generally range from 2% to 5% of the total loan amount. They cover a variety of services, including underwriting, appraisals, title searches, and setting up escrow accounts for future property taxes and insurance premiums.
For a borrower working with US Bank, understanding the three main categories—Lender Charges, Third-Party Fees, and Prepaid Items—is crucial. Lender charges are compensation for the bank’s services, while third-party fees are collected by the bank on behalf of external providers (like appraisers and title companies). Prepaid items represent future living expenses (like annual insurance and property taxes) that must be funded upfront to cover the period immediately following closing.
How to Calculate Estimated Closing Costs (Example)
- Calculate Lender Origination Fee: Take the Loan Principal ($300,000) and multiply by the Origination Fee (1.0%). Result: $3,000.
- Sum Third-Party Fees: Add the Appraisal Fee ($650) and the Title/Settlement Fee ($1,800). Result: $2,450.
- Determine Property Tax Escrow: Multiply the Estimated Monthly Property Tax ($350) by the required escrow deposit months (e.g., 3 months). Result: $1,050.
- Total Prepaids: Add the Prepaid Homeowner’s Insurance ($1,200) and the Prepaid Tax Deposit ($1,050). Result: $2,250.
- Find Total Closing Costs: Sum all three major categories: Lender Fees ($3,000) + Third-Party Fees ($2,450) + Prepaids ($2,250). Final Result: $7,700.
Frequently Asked Questions (FAQ)
What is the difference between a Loan Estimate and a Closing Disclosure? The Loan Estimate (LE) is provided within three business days of applying for a loan and is an *initial estimate* of costs. The Closing Disclosure (CD) is provided three business days *before* closing and is the final, legally binding statement of all costs and terms.
Can I negotiate closing costs with US Bank? Yes, you can often negotiate certain third-party fees (like title insurance, inspection fees) by shopping around. Lender fees, like the origination fee, are sometimes negotiable, or you may choose to pay points for a lower interest rate, which affects the overall closing cost figure.
What is included in Prepaid Items? Prepaid items typically include the first year of homeowner’s insurance premium, a required initial deposit into your property tax and insurance escrow account (often 2–6 months of payments), and prepaid daily interest (interest due from the closing date through the end of the month).
What are “lender credits” and how do they affect closing costs? Lender credits are funds provided by the lender (e.g., US Bank) to help cover some or all of the closing costs. They are usually given in exchange for accepting a higher interest rate on the loan.