About Closing Costs Calculator
The Closing Costs Calculator is a tool that helps homebuyers estimate the total costs associated with the purchase of a new home. It includes costs such as lender fees, title insurance, appraisal fees, inspection fees, and prepaid items such as property taxes and homeowners insurance.
The formula for calculating closing costs typically includes a percentage of the purchase price of the home, along with various other fees and expenses. In general, closing costs typically range from 2% to 5% of the purchase price of the home.
To calculate the estimated closing costs using this calculator, the formula used includes 3% of the purchase price for standard fees, and estimated property taxes and homeowners insurance for the first month. The calculator also factors in the interest accrued on the loan for the number of months until the first payment.
The Closing Costs Calculator requires inputs such as the purchase price of the home, the amount of the down payment, the desired loan amount, the estimated interest rate, the loan term, and the date of closing. The output is an estimated closing cost amount, which can help homebuyers budget for the total costs of purchasing a new home.