Multiply home price by closing cost percent to estimate closing costs and cash to close.
Overview
Closing costs cover lender fees, title work, taxes, and prepaid items. Buyers often underestimate cash needed beyond down payment.
Enter home price and an expected closing cost percent (commonly a few percent of price, varying by market and loan type).
Seller credits, lender promotions, and escrow prepaids can move the final number—use this as a planning range.
Steps
Purchase price of the property.
Expected closing costs as a percent of price.
Review closing costs / cash-to-close estimate.
Sum down payment with this estimate for total cash.
Check against your Loan Estimate later.
Math
closingCosts = homePrice × (closingPercent / 100)
Closing costs are modeled as a flat percent of purchase price.
Worked cases
425,000×0.03 = $12,750
$12,750 closing costs.
425,000×0.02 = $8,500
$8,500 closing costs.
600,000×0.03 = $18,000
$18,000 closing costs.
Why use this
Questions