Get estimated closing costs when you are buying or selling a home

These costs are essentially fees that mortgage professionals, such as lenders and real estate attorneys (among others), charge to finalize your home loan and the real estate transaction. Typically, closing costs range from 3% to 6% of your loan amount.

For instance, if you purchase a property for $300,000, your estimated closing costs could be anywhere from $9,000 to $18,000. Of course, your closing fee will vary based on your mortgage lender, loan type, and the jurisdiction you live in.

However, the basic formula that you can use to get an estimated closing cost is:

Home price ($300,000) x Loan amount percentage (0.03-0.06) = Closing costs ($9,000-$18,000)

In 2021, single-family homes in the United States had an average closing cost of $6,905, according to Bankrate. The most expensive closing cost in the U.S. last year was in Washington, D.C., where the average closing cost for a home was $29,888. Missouri, meanwhile, had the lowest closing cost in the U.S. in 2021, with a $2,061 average.