Published

October 6, 2020

Today, I'm going to give you a downloadable closing costs calculator. So there are some online that you can get, but I found that they don't actually put in the right numbers. So what I'm going to show you is actually a downloadable Google sheet. So you can copy it into your Google account or you can download it if you want to.

But what it's going to do is give you pretty accurate numbers based on yours. So we're going to walk through this. I'm going to show you how you can figure out your closing costs, because ultimately what you want to find out is your final cash due at closing. So let's go and walk through this.

Now, here's the link: Calculator, and you can download this and put it into Excel if you want to. You can also copy it into your own Google account, whatever one you want to do. In there, you can see Six Sections.

So we're going to start in section one and just put in the general loan information. So we have a dropdown. Now, the way that I set this up was that everything in yellow is the things that you should edit. Everything is not in yellow. I'd be very careful editing because it either has a formula or it's just sample numbers that you can put in.

So first you're going to choose your loan type. So I have conventional, this is less than 20% down, conventional with 20% down or more. FHA, VA, and USDA. Now, these two options are in here because mortgage insurance goes away on 20% down conventional.

So what's cool about this is it's going to auto calculate things like FHA mortgage insurance and USDA mortgage insurance. So for instance, if you take Up-Front Mortgage Insurance, conventional has $0 upfront mortgage insurance. But FHA has mortgage insurance, and it's going to auto calculate this for you. Not only that, but if you look over the Mortgage Insurance Section, it will calculate based on what type of loan, the type of mortgage insurance that is going to be included in the Loan Type.

So we're going to choose a conventional loan and then let's put in our purchase price. Let's say it's $300,000. After that, we get to put in our down payment percentage. So let's say 5%. What this is going to do is show us our base loan amount. So how much is the actual loan that we're taking out?

Then it's going to show us the total loan amount. Now on a conventional loan. There's no upfront mortgage insurance, but if we change this to FHA, we can see the total loan amount is actually higher than the base loan amount. That's because upfront mortgage insurance is getting put into the loan.

So we're going to stick to conventional and then we're going to choose the term. You could put in a 30-year term, or you could put 15, you could put a 20, we're going to stick with 30. Then, we have estimated property taxes and homeowners insurance. Now, what you can do is change the tax rate depending on the area that you're in, I'm doing 1.5% for a tax and 0.4% for homeowners insurance.

And this should give us pretty solid figures at least in my local market. So we did section one.

So we're going to put in lender charges. So you can put in origination charges if those exist for you. Underwriting, you're probably going to run into about a $900 cost, then in this section is where you can put in lender credits or discount points.

So let's say you're anticipating getting a lender credit of $500. You could put that in there, or let's say you're anticipating paying $2,000 in points. You can put that in there as well. We're going to leave this blank for now. And then what you have are your loan service fees. So you have your appraisal fee you're most likely have something like a credit report fee and then maybe some other extra fees, possibly a processing fee.

Put those in there if you were anticipating them. But if you're not, I would leave it and it's going to give you a solid idea of what you can expect to run into.

After that, you'll have your title costs. So this is all being auto-calculated here because your lender title insurance is going to change based on your loan amount. So you can see if I did a higher purchase price, title, and insurance increases quite a bit. So that's all going to auto calculate here for you. So you shouldn't have to touch any of the title sections. So what Total Loan Costs (A+B+C) field shows us are our Total Loan Costs which is 3,586.

Now, what we do is we go to section three, which is Other Costs. So you have government recording fees. This should be around $250 all over the nation. Then you have transfer taxes. Now, not all states have transfer taxes, for instance, Ohio doesn't but maybe your state does, and you could put in what your transfer tax is. You can just do a quick Google search to figure out what your transfer taxes are.

You can put in the percentage and that will auto calculate for you. Then what we have are your prepaid interest days along with 12 months of homeowners insurance and any property taxes prepaid, normally they're not prepaid, but if you're going to run into that situation, you can put that in there as well.

And then you have your escrow account is set up. So about three months of insurance, three months of property taxes, and zero months of mortgage insurance. So if you're going to waive escrows, you can just put zero. Or if not a good number is just to keep those right around three. Then you also have an optional owner's title and insurance policy.

So if you read up on that and say, I don't want it, then you can zero it out. If you want to just know that it will take out this formula. And then you're most likely going to have home inspection costs. So I threw that in here as well. So you can see what that looks like. So now what we can see are the total closing costs of this.

So then we go up to Section Four and put in your anticipated rate. So we're going to do 2.875.

Then, in Section Five, it's going to auto calculate everything for you. So your principal and interest, the amount of property taxes, you're paying homeowners insurance and mortgage insurance. And that's going to give you a total monthly payment of $1,800 per month. So this doubles as a closing cost calculator and monthly payment calculator.

Then, what we want to do is we want to calculate the cash to close. So how much money do you actually have to bring to the closing table? So we have your down payment. That's that 5% of 300,000. You also have closing costs. Then if you want, see if you want to put in the fact that you prepaid an appraisal, maybe you're wanting to see what the final number is after that prepaid appraisal. You can put that number and you want to subtract that.

You can put in an earnest money deposit already, and let's say you put a thousand dollars down as an earnest money deposit, and then maybe you ask for seller concessions, maybe ask for let's say 2% of the purchase price towards seller credits. So you're getting $6,000 in seller credits and that means everything you put together, your total bottom-line number is $14,930.

Now let's say that you wanted to put 20% down. Let's come and put conventional 20%. What that's going to do is zero out our mortgage insurance, and we'll put our down payments at 20%.

Now we can see all those numbers with 20%. Now let's take a look at FHA. Let's say we did FSG 3.5% down. And we can see immediately everything switches to look exactly how we need it to and everything's going to update accordingly to those as well.

So this should give you a really quick and easy way to run through a good ballpark of closing costs and take a look at what this is going to look like. These are numbers based on what I've seen in our local market. Your yours might be different. So just keep that in mind.

Again, here's the link: Calculator. If you want to go ahead and download that and start using it to get an approximation of what you think you'll spend total do at the closing table.

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Only for educational usage. All calculations should be verified independently. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This is not an offer to lend and should not be used to make decisions on home offers, purchasing decisions, nor loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, nor real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate and/or financial advice. Read the full disclaimer here.