The down payment is only part of what you bring to closing. Add the costs and the credits to see the real number.
How it works
Cash to close = down payment + closing costs − credits − earnest money already paid
Closing costs add the lender fees, points (a percentage of the loan), services, title and escrow, government fees and prepaid items. On a refinance, the new loan pays off the old balance and the costs; what is left comes to you, or you bring the shortfall.
Keep in mind
- Your Loan Estimate lists these in the same groups: section A is lender charges, B and C are services, E is taxes and government fees, F and G are prepaid items and the escrow deposit.
- Seller credits are capped by loan type, and any credit above your costs is lost, not paid to you.
- Prepaid items are not fees; they are your own taxes, insurance and interest paid in advance.
Questions
How much are closing costs?
They vary with the loan amount, the state, the title and escrow companies and the lender’s fees. Your Loan Estimate gives the figures for your loan; enter them here to see the cash you need.
Can closing costs be added to the loan?
On a refinance, often yes, within the loan-to-value limit. On a purchase, they are paid at closing, though seller and lender credits can cover part of them.
What is the difference between closing costs and cash to close?
Closing costs are the fees and prepaid items. Cash to close adds your down payment and subtracts credits and any deposit you have already paid.
Related guides
- First-time buyers
- Refinancing
- Conventional loans
- Mortgage broker vs bank
- One-time vs two-time close construction loans
- Discount points vs lender credits
- Closing costs in California
- Closing costs in Arizona
- Closing costs in Florida
- Closing costs in Ohio
