How much are closing costs on a $500,000 home?

Closing costs on a $500,000 home typically range from $10,000-$25,000 (2-5% of the purchase price). This includes lender fees, title insurance, inspections, and prepaid items.

Who pays closing costs - buyer or seller?

Both parties pay closing costs. Buyer costs are typically 2-5% of purchase price. Seller costs are typically 6-10% (including real estate agent commissions). Costs can be negotiated.

Can closing costs be rolled into the mortgage?

Some closing costs can be rolled into the loan, but this increases your loan balance. Lender credits may cover some costs in exchange for a higher interest rate.

Back to Calculator

Closing Costs Calculator

Estimate all the fees you'll pay at closing. Closing costs typically range from 2-5% of the home price. Know exactly what to expect before you buy.

Home Price ($)

Down Payment (%)

Interest Rate (%)

Loan Type

Loan Type: Conventional

Standard loan, typically needs 20% down to avoid PMI

Total Closing Costs

$28,920

Down Payment

$100,000

Total Cash Needed

$128,920

Costs as % of Home

5.8%

Loan Amount

$400,000

Methodology & Assumptions

How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.

Formula

Closing costs = origination (≈1% of loan) + third-party fees (appraisal $500, credit $50, title search $200, title insurance 0.5% of price, attorney $800 where applicable, recording $150, inspection $450) + prepaids (2 mo tax + 2 mo insurance) + initial escrow (2 mo tax + 2 mo insurance).

Assumptions

State differences are real: title insurance is far more expensive in some states; attorney fees only in attorney-state markets.
Seller credits and lender credits can offset 3-6% — not modeled by default.
FHA upfront MIP (1.75%) financed into the loan is not a cash line item.

Limitations

Estimate only — your Closing Disclosure (3 days before closing) is authoritative.
Cash-to-close adds your down payment on top of these fees.
High-cost states (NY, CA) run 1.5-2x the national averages.

Worked Example

$400,000 home, 20% down: origination $3,200 + third-party ≈ $4,150 + prepaids/escrow ≈ $3,900 → about $11,250 in fees (2.8% of price).

Sources

CFPB — Closing Disclosure explainer
ALTA settlement standards

Pro Tip: You can negotiate with the seller to cover some closing costs (seller concessions). In buyer's markets, sellers may agree to pay up to 3-6% of the purchase price toward your closing costs.

Itemized Closing Costs

Fee	Description	Estimated Cost
Loan Origination Fee (1%)	Charged by lender for processing the loan	$4,000
Appraisal Fee	Professional assessment of home value	$500
Credit Report Fee	Pulling your credit report	$50
Title Search & Insurance	Verifies clear ownership and protects against title defects	$2,700
Survey Fee	Property boundary verification	$400
Attorney Fee	Legal review of closing documents	$800
Recording Fee	Government fee to record the deed	$150
Home Inspection	Independent inspection of home condition	$450
Home Warranty	1-year coverage for major systems and appliances	$600
Pest Inspection	Termite and pest damage inspection	$100
Escrow Deposits (6 months)	Prepaid escrow for taxes and insurance	$1,250
Prepaid Interest	Interest from closing date to first payment	$13,420
Homeowner's Insurance (1 year)	Annual premium paid upfront	$1,500
Property Taxes (6 months)	Prorated property tax payment	$3,000
Total Closing Costs		$28,920

What Are Closing Costs?

Closing costs are the fees and expenses you pay when finalizing a real estate purchase or refinance. They typically range from 2–5% of the home price and include lender fees, title insurance, appraisal, inspections, and prepaid items like property taxes and homeowners insurance.

How Does the Closing Costs Calculator Work?

Our calculator itemizes every common closing fee based on your home price, down payment, loan type, and location. It provides a detailed breakdown of lender fees, third-party services, and escrow prepaids so you know exactly what to budget for at closing.

Why Use Our Closing Costs Calculator?

Get a full, itemized estimate of all closing fees
See the impact of different loan types — Conventional, FHA, VA, USDA
Know your total cash needed, including down payment

Understanding Closing Costs

🏦

Lender Fees

Loan origination, processing, underwriting, and discount points. These vary significantly by lender. Always compare at least 3 lenders.

📋

Title & Escrow

Title search, title insurance, escrow fees, and notary. These protect you and the lender from ownership disputes.

🏛️

Government Fees

Recording fees, transfer taxes, and stamp duties vary by state and county. Some states have no transfer taxes.

🔍

Pre-Paids & Escrow

Homeowner's insurance, property taxes, and prepaid interest collected upfront to establish your escrow account.