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.

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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 (%)

Loan Type

Loan Type: Conventional

Standard loan, typically needs 20% down to avoid PMI

Total Closing Costs

$28,500

Down Payment

$100,000

Total Cash Needed

$128,500

Costs as % of Home

5.7%

Loan Amount

$400,000

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	$13,000
Homeowner's Insurance (1 year)	Annual premium paid upfront	$1,500
Property Taxes (6 months)	Prorated property tax payment	$3,000
Total Closing Costs		$28,500

Understanding Closing Costs

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Lender Fees

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

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Title & Escrow

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

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Government Fees

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

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Pre-Paids & Escrow

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