Closing Costs Explained: What to Expect When Buying a Home

March 15, 2026 · 5 min read

Closing costs typically run 2-5% of the purchase price — on a $400,000 home, that's $8,000-20,000 on top of your down payment. Estimate yours with our Closing Cost Calculator.

What's Included

Lender origination fees (0.5-1%), appraisal ($400-700), title insurance ($500-2,000), recording fees, prepaid property tax and insurance, attorney fees (in some states). If buying points, add that too — our Mortgage Points Calculator shows if points are worth it.

How to Reduce Closing Costs

Negotiate with the seller (especially in a buyer's market). Shop multiple lenders — they must provide Loan Estimates within 3 days. Ask about lender credits (higher rate but lower closing costs). Check your total cash needed including the down payment and plan your timeline with our Down Payment Timeline Calculator.