Mortgage Application Cost Calculator
Estimate the total cash you'll need at mortgage application and closing: appraisal, credit pull, origination, title insurance, recording fees, and prepaid escrow. Mirrors the CFPB Loan Estimate (LE) format used by every regulated US lender. Plan your out-of-pocket budget before applying.
What's Included in Mortgage Application Costs?
Total mortgage closing costs typically run 2-5% of the loan amount on a purchase, slightly less (2-3%) on a refinance. The CFPB-mandated Loan Estimate (LE) form, which every regulated US lender must give you within 3 business days of application, breaks them into five categories: (A) Origination — application fee, underwriting fee, processing fee, optional discount points; (B) Services you cannot shop for — appraisal ($450-$650), credit report ($35-$80), flood determination ($15-$25), tax service fee ($50-$80); (C) Services you can shop for — title insurance ($800-$2,500), settlement/escrow fee ($500-$1,200), survey ($350-$700 if required); (E) Taxes & government recording — recording fees ($75-$300), transfer tax (0% to 2%+ of price by state); (F-G) Prepaids & escrow — prorated property tax, homeowner's insurance year-1 premium, and 2-3 months of escrow reserves. Per the CFPB Loan Estimate guide, you can compare LE forms side-by-side from multiple lenders to negotiate. Last updated May 2026.
Which Closing Costs Are Negotiable?
Most borrowers leave $1,500-$3,500 on the table by not negotiating. Always negotiable: lender origination fees (ask for $500-$1,500 reduction or full waiver in exchange for a 0.125% rate increase), title insurance (CFPB lets you choose your own title company in most states — shop 3 quotes), settlement/escrow fee (often 30-50% lower with a non-affiliated provider), discount points (recalculate break-even before paying any), seller concessions on purchase (FHA allows 6%, conventional 3-9% based on LTV). Rarely negotiable: appraisal fee (set by USPAP regulations), credit report (set by Equifax/Experian/TransUnion bureau pricing), recording fees (county-set), transfer tax (state-set), prepaid property tax (county schedule). Per CFPB shopping guidance, your lender must include a written list of acceptable third-party providers — but you're free to use any qualified provider.
How to Get a Lender Credit to Lower Closing Costs
A "lender credit" is the inverse of discount points: instead of paying upfront to buy down the rate, the lender pays a portion of your closing costs in exchange for a slightly higher rate. A 0.25% rate bump typically generates 1.0% of loan amount in credits — on a $300K loan, that's $3,000 of closing-cost relief for a $40-$50/month payment increase. Math: break-even is 5-7 years, so credits favor borrowers who plan to refinance or sell within that window. Conversely, paying 1 discount point ($3,000 on $300K) typically buys a 0.25% rate reduction — break-even is also ~5-7 years but in the opposite direction. Both moves are zero-sum on rate, but lender credits are the right call when cash-to-close is tight. Run the math in our Discount Points Calculator before signing.
Closing Costs by Loan Type — Conventional vs FHA vs VA vs USDA
Loan type adds upfront costs beyond standard application fees. Conventional: no upfront mortgage insurance; PMI is monthly only. FHA: 1.75% upfront mortgage insurance premium (UFMIP) on every loan, financeable into the loan balance — on a $280K loan, that's $4,900 added to your loan, not paid out of pocket. VA: 2.15% funding fee for first-time use (zero down), 3.30% for subsequent use; financeable; waived for veterans with service-connected disability. USDA: 1.00% upfront guarantee fee + 0.35% annual fee. These upfront premiums are typically rolled into the loan, so they don't increase cash-to-close — but they do increase your loan amount and total interest paid. Source: HUD FHA fee schedules and VA loan guarantee.
Average Mortgage Closing Costs by State in 2026
Total cash-to-close varies most by state transfer-tax law. On a $350,000 purchase with 20% down, average closing costs in 2026 range roughly: Delaware $13,500 (4% state realty transfer tax — highest in US), New York $11,800, Washington DC $11,200, Maryland $9,400, Pennsylvania $8,900, New Jersey $8,100 (state mansion tax above $1M), California $7,300, Florida $7,100, Texas $5,200 (no state transfer tax), Indiana $4,900, Kansas $4,800, Missouri $4,700 (lowest). The split is roughly 1/3 lender fees (Section A+B), 1/3 title + settlement (Section C), 1/3 government recording + transfer tax (Section E). Per CFPB Closing Disclosure resources, your final, binding numbers appear on the Closing Disclosure (CD) at least 3 business days before closing.
Last updated: June 2026. Sources: consumerfinance.gov, hud.gov, state transfer-tax statutes verified per state revenue department.
Frequently Asked Questions
How much do mortgage closing costs typically run?
Purchase: 2-5% of loan amount. Refinance: 2-3%. On a $300K loan, expect $6,000-$15,000 total. Lower in low-tax states (TX, IN, KS, MO); higher in NY, DC, MD, DE, PA where transfer taxes add 1-2% of price.
When do I have to pay closing costs?
At closing, by certified check or wire transfer. The exact "cash to close" number is on your final Closing Disclosure (CD), which the lender must give you at least 3 business days before closing. Bring valid ID and the CD to the closing table.
Can closing costs be rolled into the loan?
On a refinance, yes — most lenders allow you to finance closing costs into the new loan (raises balance, but no out-of-pocket cash needed). On a purchase, only the FHA UFMIP, VA funding fee, and USDA guarantee fee can be financed; standard closing costs cannot.
What's the difference between a Loan Estimate and Closing Disclosure?
Loan Estimate (LE): given within 3 business days of application; preliminary fees, locked-in for 10 business days; can vary slightly at closing within CFPB tolerance rules. Closing Disclosure (CD): final document, given at least 3 business days before closing; legally binding numbers.
Are mortgage closing costs tax deductible?
Most are not. Exceptions: (1) discount points are deductible in the year paid on a primary residence purchase; (2) prorated property tax is deductible the year paid; (3) prepaid mortgage interest is deductible. Origination, appraisal, title insurance, and recording fees are not deductible. Source: IRS Pub 936.
How can I lower my closing costs?
Shop title insurance + escrow (Section C) — easily $500-$1,500 savings. Negotiate the lender's origination fee (Section A). Take a lender credit in exchange for a 0.125-0.25% higher rate. Negotiate seller concessions on a purchase (FHA up to 6%, conventional 3-9%).
Which US states have the highest mortgage closing costs?
Delaware tops the list at roughly 3.5-4.0% of price thanks to its 4% state realty transfer tax. New York, Washington DC, Maryland, Pennsylvania, and New Jersey also exceed 2.5% of price because of state and county transfer/recording taxes. Texas, Indiana, Kansas, and Missouri are the cheapest states, typically 1.4-1.7% of price, because they impose little or no state transfer tax.
What is the difference between closing costs and prepaids?
Closing costs (Sections A, B, C, E on the Loan Estimate) are one-time fees for the loan and title work. Prepaids (Sections F, G) are amounts you pay at closing for things you will owe later: prorated property tax through year-end, your first year of homeowners insurance, and 2-3 months of escrow reserves. Prepaids feel like fees on the Closing Disclosure but they actually fund your future tax and insurance bills, not the lender.