How are closing costs calculated?
Ask USMI can help explain this answer and the published sources behind it.
Short answer
are not calculated from a single national formula. Fannie Mae says they depend on the lender, third-party settlement providers, the property location, and the loan type. The charges can include government taxes, insurance premiums, and settlement charges such as the settlement agent's fee and the appraisal fee.
Full explanation
Fannie Mae lists the lender, outside settlement-service companies, where the property sits, and the loan product as the main drivers of closing costs. Because those inputs differ, two loans on similar homes can close with different cash-to-close figures.
The costs Fannie Mae names include government taxes, insurance premiums, and settlement charges — among them the settlement agent's fee and the appraisal fee. The frozen source does not publish a current national average, a standard percentage of the sale price, or a line-by-line worksheet. Compare the Loan Estimate and Closing Disclosure you receive for the actual figures on your transaction.
Sources reviewed
Homebuyer Frequently Asked Questions
Limits
Educational summary of public sources. Not personalized advice. The original official source controls where applicable.
Last reviewed
September 10, 2026
Related FAQs
Related mortgage terms
Cite as
Ask a follow-up
Keep exploring this question with the published answer in context.