What are closing costs?

Closing costs, also known as settlement costs, are the fees you pay when obtaining your loan. Closing costs are typically about 3-5% of your loan amount and are usually paid at closing.

What is included in closing costs?

While each loan situation is different, most closing costs typically fall into four categories: Points & lender origination fees Third-party fees such as appraisal, title, taxes and credit report fees Prepaid interest, taxes and mortgage insurance Escrow account funds

Does the buyer or the seller of a home pay closing costs?

Typically the buyer pays closing costs, though sometimes negotiations between the buyer and the seller can lead to the seller paying some of the closing costs. See all mortgage FAQs

Closing Costs Calculator - Estimate Closing Costs at Bank of America

Estimate your closing costs

Use our closing cost calculator to estimate your total closing expenses for purchasing a home

Loan amount

Purchase price * Enter $ amount. Enter a purchase price

$60,000 - $2.5 million

Down payment amount Down payment amount

Total loan amount ($60,000 - $2.0 million) Total loan amount ($60,000 - $2.0 million)

Enter pre-tax income from all applicants for more options

Annual gross household income * Enter $ amount. Enter Your Annual gross household income

Loan options^adatext

Property ZIP code * Enter a valid ZIP code

Lookup zip code popup

Calculate

When working with the calculator, please remember the dollar amounts displayed aren’t guaranteed, and what you actually pay may be different. The estimates you receive are for illustrative and educational purposes only.

To recalculate and see results try lowering your purchase price, increasing your down payment, or entering a different ZIP code. (Note: We offer a wide range of loan options beyond the scope of the calculator, which is designed to provide results for the most popular loan types.)

Our experienced lending specialists are ready to help you with your financing needs:

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includes prepaid items and escrow account funds

You may qualify* for up to $7,500 in closing cost fees.
No repayment required.

You may qualify* for up to $7,500 in closing cost fees and up to $10,000 in down payment assistance. No repayment required.

If you’re thinking of becoming a homeowner, we may be able to help. Bank of America’s Community Homeownership
Commitment® may be able to help potential homebuyers with down payment grants and more.

Start an Application

Learn More

Loan details

Down payment
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Estimated closing costs
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Total cash required to close
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APR popup
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Principal & interest payment popup
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Escrow payment (taxes & insurance) popup
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Mortgage insurance payment
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Total estimated monthly payment
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The rates displayed here are as of:
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Loan assumptions and disclosures

Looking for ways to lower your closing costs? Need a down payment lower than 5%? Connect with a lending specialist, or learn more about programs offered by Bank of America.

Closing cost details

Points & lender fees

$XXX,XXX

Discount points may vary based on loan product and amount. To reduce your closing costs, you may decide to select an interest rate with fewer discount points. If you are interested in this please contact a lending specialist.

Estimated third-party fees

$XXX,XXX

Total third-party fees may include seller-paid fees.

Title company and attorney fees are determined by the individual state and the company you use and may differ from this estimate. This represents the lender's policy only. In some states an owner's policy is also required or may be negotiated between buyer and seller.

Estimated prepaid interest, taxes & insurance

$XXX,XXX

Prepaid interest represents funds for the initial payment of interest on your loan. Prepaid interest varies depending on which day of the month you close. It covers the interest that accrues on your loan from your closing date until the last day of the month. Once your closing date has been selected, we will be able to provide you with the exact amount of prepaid interest required for your loan so you can plan accordingly.^adatext

Property taxes are a fixed percentage based on the tax assessor’s appraised value of your home that you pay to the county in which the home is located. The specific percentage varies dramatically from county to county in every part of the country. You pay this tax annually, semiannually or as part of your monthly mortgage payments (escrow). The local county tax assessor’s office can give you the rate for your county. Depending on when you close your loan, some of this property tax is typically due at the time of closing and calculated as a prepaid amount.

You will also need to provide the initial premium for your homeowners insurance policy. In some cases this may include flood, earthquake or other insurance coverage as well.

We’ll keep you informed about cash to cover prepaid expenses for your new loan and property.

$XXX,XXX

Estimated escrow account funds

$XXX,XXX

An escrow account may be required to cover the future payments for items like homeowners insurance and property taxes. They do not represent fees; instead, they establish the funds needed to properly service your loan. The property taxes and homeowners insurance premium will be the same regardless of the lender you choose.

Note: As taxes are due at various times, the deposit needed for taxes may vary from 2 to 8 months. If you are purchasing your home, the seller may be responsible for a portion of these taxes.

We’ll keep you informed about cash to cover prepaid expenses for your new loan and property.

$XXX,XXX

Total estimated closing costs^adatext

$XXX,XXX

Amounts shown will differ from actual costs and may include seller-paid fees