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Take a look at the following table to see how closing costs add up. It compares closing costs for a $250,000 home with two different down payments, one of 10 percent (second column), the other of 20 percent (third column).
| Cost | 10 percent down payment | 20 percent down payment |
|---|---|---|
| Mortgage amount | $225,000 | $200,000 |
| Down payment | $25,000 | $50,000 |
| Application fee (may include credit report fee) | $150 - $350 | $150 - $350 |
| Credit report fee (if not part of application fee) | $25 - $35 | $25 - $35 |
| Loan origination fee (1 to 2 points) | $2,250 - $4,500 | $2,000 - $4,000 |
| Points (0 to 3) | $0 - $6,750 | $0 - $6,000 |
| Appraisal fee | $200 - $400 | $200 - $400 |
| Home inspection fee | $200 - $400 | $200 - $400 |
| Pest inspection fee | $75 - $200 | $75 - $200 |
| Prepaid interest (assumes a 6 percent interest rate and 15 days left in the month) | $550 | $490 |
| Homeowner's insurance | Varies | Varies |
| Private mortgage insurance (one month) | $95 - $280 | N/A |
| Title search and lender's title insurance | $700 - $900 | $700 - $900 |
| Prorated property taxes | Varies | Varies |
| Survey | $150 - $400 | $150 - $400 |
| Recording and transfer fees | $50 - $4,500 | $50 - $4,000 |
| Attorney fees | $500 - $1,500 | $500 - $1,500 |
As you can see, closing costs vary widely. Your down payment and the size of your mortgage affect the fees. Other factors include the home's location, your credit score, your mortgage interest rate, whether you buy points to reduce that rate, and the lender's policies. As a rule of thumb, most buyers pay closing costs of 3 to 6 percent of the loan amount.
