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Fees, prepaids and escrow

Closing cost calculator for mortgage brokers: three buckets, one cash-to-close number

The closing cost calculator groups a purchase's costs into lender fees, third-party fees and prepaids and escrow, then shows the total, the cash to close and closing costs as a percentage of the price. For a broker it gives shoppers a quick, comparable figure, and it gives you a lead that has started thinking about lender fees.

A simple three-bucket closing estimate that early shoppers understand and that tells you how they are comparing lenders.

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Start free on Originator What the numbers tell you about the borrower
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Buying & Pre-Qualifying

What is a borrower trying to learn from a closing cost calculator?

They want a rough total, fast. This visitor is often earlier than someone under contract: they have a target price and a down payment in mind and have heard closing costs run "a few percent", but nobody has turned that into dollars.

Three buckets are easier to reason about than a dozen fee lines. Lender fees are the part they suspect varies most between lenders; third-party fees feel fixed; prepaids and escrow confuse almost everyone, because they are not really fees for the loan. The percentage-of-price result gives them a benchmark they can hold up against what friends paid or what a Loan Estimate later shows. Many will run it twice, once with a smaller down payment, to see how the lender-fee bucket shifts.

How can a broker use the closing cost calculator to start better conversations?

Use it as the companion to your payment calculator on purchase pages, and as a stand-alone answer on pages that target "how much are closing costs" searches. Brokers in particular benefit, because the lender-fee bucket is where you can explain the value of shopping several wholesale lenders without making a price promise.

Each submission lands with the home price, down payment, rate and term, the lender-fee percentage the borrower assumed, their third-party and prepaid amounts, and all six results. The Closing Costs (% of Price) result is a handy sorting field: a borrower who typed in assumptions producing a very low percentage may be in for a surprise, while one near the top of the range may be over-budgeting and holding back cash they could keep in reserve.

In the CRM, tag these as "cost-focused" leads. Your first message should make the three buckets concrete, explain which are shoppable, and offer to show a real Loan Estimate when they are ready. The built-in CRM keeps each recalculation on the same contact, so you can see whether the borrower is fiddling with the down payment or with the lender-fee line, which tells you what they are actually weighing.

What arrives in your CRM

What the numbers tell you about the borrower

  • Lender Fees (% of loan)If the borrower lowered this well below the default, they have probably seen a no-fee or low-fee advertisement. Be ready to explain the trade-off between lender fees, rate and lender credits in plain terms.
  • Closing Costs (% of Price)This is the borrower's mental benchmark. Very low suggests optimistic inputs and a risk of sticker shock later; very high can mean they are over-saving for costs and could keep more cash in reserves.
  • Prepaids & EscrowA zero or tiny figure here usually means the borrower does not know about initial escrow deposits and prepaid insurance. A one-line explanation from you builds trust quickly.
  • Total Cash to CloseSet against the down payment, this shows the full cash requirement. When the total is close to what the borrower said they have, the conversation shifts to credits, gift funds and program choice.

A first message that uses their numbers

What should a broker say first to a closing cost lead?

Hi [Name], thanks for estimating closing costs on our site. Your numbers came to about [Estimated Closing Costs], or [Closing Costs (% of Price)] of the price. As a broker I can compare lender fees across several lenders, and I can show you which of the third-party costs you are able to shop yourself. Would that be helpful?

Do not state or imply that your fees will match or beat the estimate; only a Loan Estimate discloses actual costs.

Where this calculator earns its place

  1. 01

    Purchase loan page, beside the mortgage calculator

    Payment and cash-to-close together answer the two questions every buyer has, and a tabbed widget keeps both on one screen.

  2. 02

    Blog post or FAQ about closing costs

    Readers searching for closing cost explanations convert better when they can turn the article into their own number.

  3. 03

    Broker comparison or "why use a broker" page

    The lender-fee bucket gives you a concrete place to explain wholesale comparison without making price claims.

Limits worth knowing

  • Third-party fees and prepaids are single dollar amounts the borrower guesses, so the total is only as good as those guesses.
  • Discount points are not included in the lender-fee percentage unless the borrower adds them, so the estimate can understate the cost of a bought-down rate.
  • Earnest money and seller or lender credits are not subtracted, so Total Cash to Close is a gross figure.

Calculator disclaimer: Estimates only. Closing costs vary by state, lender and property. Your official Loan Estimate and Closing Disclosure are the binding figures.

Definitions in the calculator

Closing costs
The fees and prepaid charges due when a mortgage is finalized, separate from the down payment. This calculator groups them into lender fees, third-party fees and prepaids and escrow. Amounts vary by state, lender and property; your Loan Estimate and Closing Disclosure show the binding figures.
Lender fees
Charges the lender collects for making the loan, such as origination, underwriting and processing fees, entered here as a percentage of the loan amount. Because they are based on the loan, not the price, a larger down payment lowers them. Discount points bought to reduce the rate would be added on top.
Third-party fees
Fees paid to outside providers rather than the lender: appraisal, title search and title insurance, settlement or attorney fees, credit report, survey and government recording charges. Some of these services you can shop for; the Loan Estimate shows which. This calculator takes them as a single dollar amount.
Prepaids
Costs paid at closing in advance of when they are due, such as the first year of homeowners insurance and interest from the closing date to the end of the month. They are not fees for the loan itself, but they still add to the cash needed to close. This calculator combines them with initial escrow deposits.
Escrow account
An account the loan servicer holds to pay property taxes and homeowners insurance on your behalf, funded by part of each monthly payment. At closing, the lender collects an initial deposit to seed it, which appears among the prepaids. The balance is reviewed each year and payments are adjusted if taxes or premiums change.
Total cash to close
The down payment plus estimated closing costs: the total a buyer should expect to bring to closing in this calculator. On the actual Closing Disclosure, the earnest money deposit and any seller or lender credits reduce it, so the check you write can be smaller than this figure.
Closing costs as % of price
Estimated closing costs divided by the home price. It is a quick way to compare an estimate with what is typical in your area or across lenders. Because lender fees scale with the loan while some third-party fees are flat, the percentage tends to be higher on lower-priced homes.
Down payment
The part of the purchase price paid in cash rather than borrowed. The loan amount is the home price minus the down payment. A larger down payment lowers the loan amount and the lender fees calculated on it, though it raises the total cash needed to close.
Loan Estimate
The standardized form a lender must provide shortly after you apply, showing the estimated rate, monthly payment, closing costs and cash to close. Because every lender uses the same format, it is the practical tool for comparing offers. Certain fees on it can increase at closing only within legal limits.

Terms on this page

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FAQ · 8 questions

Questions about this calculator

What goes into each of the three buckets?

Lender fees are origination, underwriting and processing charges, entered as a percentage of the loan. Third-party fees cover the appraisal, title search and insurance, settlement or attorney fees, credit report, survey and recording. Prepaids and escrow are the first year of homeowners insurance, interest to month-end and the initial deposit that seeds the escrow account for taxes and insurance. The calculator adds the three for the estimated closing cost total.

Can you show a worked example?

On an illustrative $400,000 purchase with 10% down, the loan is $360,000. Lender fees at 1% add $3,600; say third-party fees are $4,500 and prepaids and escrow $5,000. Estimated closing costs total $13,100, about 3.3% of the price, and total cash to close is $53,100 including the $40,000 down payment. Your real figures depend on your state, lender and closing date.

Why are closing costs a higher percentage on cheaper homes?

Because some costs barely change with price. Lender fees scale with the loan, but an appraisal, a settlement fee or recording charges cost about the same on a $200,000 home as on a $500,000 one. Spread over a smaller price, those flat costs make a bigger percentage. On a $200,000 purchase, similar fixed fees can push the percentage above 4% even when lender fees are modest.

Are prepaids and escrow really closing costs?

They are part of what you pay at closing, but they are not fees for the loan. Prepaids cover things you would pay anyway, such as homeowners insurance and interest for the rest of the month. The escrow deposit is your own money held to pay future tax and insurance bills. That is why some lenders advertise low closing costs while the cash you bring stays similar.

Why does the calculator ask for loan term and rate?

The term and rate describe the loan behind the costs; the tooltips note they are used for the projected payment. The closing cost results themselves are driven mainly by the price, down payment, lender-fee percentage and the two dollar inputs. If you want the full monthly payment next to the cash figure, pair this calculator with a home loan PITI calculator in the same widget.

What does a closing cost lead tell a broker that a payment lead does not?

It tells you the borrower is thinking about cash and fees, not only the monthly number. The lender-fee percentage they assumed shows what they expect to pay you or your lenders, and the percentage-of-price result shows their benchmark. Leads who adjust the lender-fee line repeatedly are usually comparison shopping, which is a natural opening to explain how a broker shops multiple lenders.

Can I relabel the buckets to match my Loan Estimate language?

Yes. PrequalFunnel lets you customize the copy for every label, heading and button, so you could rename "Third-Party Fees" to match the section names your borrowers will see later. Keep the meaning unchanged and the disclaimer visible. If you change wording that touches fees or pricing, it is worth a quick review with your compliance team before you publish.

How do I know which ad or page produced a closing cost lead?

Every submission carries attribution: UTM tags, ad click IDs such as gclid or fbclid, the referrer and the landing page. You can see that a lead came from a "closing costs explained" post versus a paid search ad and compare which source produces borrowers who go on to apply. The same fields travel in the webhook payload if you report in HighLevel instead; see lead attribution.

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