Closing Costs Calculator
Compute the closing costs required at closing for your loan by using this mortgage calculator.
Figure your closing costs by plugging in all the numbers on your Good Faith Estimate you received from your lender. Federal law requires lenders to provide you one.
It is a good idea to have these figures so you can compare them with what other lenders are offering.
Estimating closing costs by using this closing costs calculator and you will have a house with dollar signs. Why the dollar signs? Because you now know how much you will have to put up to buy the house you are looking at.
Remember that property taxes are always a part of your closing costs. Other fees include your credit report, title insurance, and the appraisal. Those fees can vary depending on which company is used.
Estimating Closing Costs with This Calculator
This is quite the calculator, so let me walk you through it. First you will need the purchase price of the house. Next put in the number of years the mortgage is for. Usually a fixed rate mortgage can be 30 years or even 15 years.
New put in the down payment figure. You can put this figure in one of two ways. Either put an amount you plan to put down or put in the percentage required by the lender. Many conventional mortgages have a 20% requirement for the down payment. While an FHA mortgage may only have 3.5% requirement.
The example has 20%, but you can see across that the closing costs calculator will give you figures for 10%, 5%, and 3% down payments.
Note: You will have to put your cursor in another box after your entry for the closing costs calculator to update. Pushing the enter button will not update this calculator.
The loan required - base is the amount you may be borrowing. Once again you can see the amount depending on how much the down payment is.
Continuing the Mortgage Closing Cost Calculator
Let's move on with estimating the closing costs. You will need your good faith estimate that the lender should have given you.
Loan origination fee is on the good faith estimate. It is normally 1% which is what is in the box. But some lenders ask for more. So plug in the percent from your good faith estimate.
Discount points is zero, but put the number 1 in here so you can see what happens. Notice your closing costs will go up. Discount points is the percentage you plan to pay to lower your interest rate. So its really not a discount. Watch what you are agreeing to. If the interest rates are high, this might be good to buy down. But if they are low, you don't need this.
Appraisal fee, credit report fee, and title insurance has approximate figures. Look on your good faith estimate for the approximate figures your loan office put down. Until the loan officer orders these services they can only estimate them. So they may go up or down on you final HUD-1 Settlement Statement.
The next box is a percentage. Leave this at .5% for now. It's a cushion for any hidden or last minutes additional closing costs. Watch these though, sometimes they are unnecessary closing costs.
As you move your cursor into the next box, you will see the estimating closing costs number will change. Now let's move on to the pre-pays!
Next Estimating Closing Costs
The first box is for property taxes. Ask the real estate agent what the property taxes were for last year on this home. Now divide that figure by 12. Take that figure and multiply by 2 and put in this box.
Remember, this closing costs calculator is only estimating. Usually you have to pay the taxes from when you close on the home to when they are due again. For example, if you close in May and the next tax payment is due in September, you may have to pay 4 or 5 months at closing. This calculator just figures two months for now.
Now find out what hazard insurance or home owner insurance costs are for your area. You can ask your real estate agent or your insurance agent to get an estimate for the year. This calculator has $1200/year but my is only $565/year. So find out the approximate pricing for your area and put that figure in here.
Look at your good faith estimate for the recording fees and plug those in.
You may be wondering what home owners fees are. This is one month of the home owners association fees. Some residential areas have home owners associations (HOAs) and they have a monthly fee you have to pay to be in their association. If the property is in the association's area, this is a requirement. Otherwise put zero in this box.
Mortgage (P&I) or private mortgage insurance (PMI) is required if your mortgage is not below 80% of the purchase price. You should find this on the good faith estimate also. A small down payment usually means you might have to pay monthly mortgage insurance.
Finalizing the Closing Costs Calculator
Now you can see what you monthly payment may be and how much income you may need to buy that particular home. As you look across you can see different amounts. These adjust depending on your down payment amount.
Wow, you have been estimating closing costs. Use this closing costs calculator with each deal and see which one is giving you the better mortgage offer.
This is an awesome closing costs calculator!