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Determining Costs


What You'll Learn

  • The primary costs associated with homebuying are your down payment and closing costs
  • If there are any questionable fees that you encounter on your Good Faith Estimate or HUD-1, ask questions!
  • Down payment options range from 3 to 20%

Fees, Costs, Expenses:  These words will come into play throughout the home buying process.  The more you understand them and what to expect, the more comfortable you will be. Remember to ask questions if you encounter a cost that doesn’t make sense to you.

Down Payment:  Depending on your credit history and other factors, you'll need to make a down payment ranging from 3 to 20% of the purchase price of your home.  Generally, you can expect to pay between 5 and 10%. Talk with your lender about the down payment that is best for you.

Down payments and Your Mortgage

Calculated with our Fixed Rate Mortgage Calculator:

Down Pay­ment Option Pur­chase Price Down Pay­ment Cost Esti­mated Month­ly Mort­gage Pay­ment*
3% $150,000 $4,500 $1,079
5% $150,000 $7,500 $1,042
10% $150,000 $15,000 $962
20% $150,000 $30,000 $816
* Including principal and interest, and estimated taxes and insurance.  Private Mortgage insurance is included for down payments less than 20%.

Closing Costs, also called settlement fees, are costs incurred as part of the home buying process.  These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction.  Generally, closing costs range between 2 and 5% of your purchase price. 

On a $150,000 purchase, you can expect to spend between $3,000 and $7,500 on closing costs.


Key TakeAways

  1. The larger your down payment, the lower your mortgage payment. However, it may not always make financial sense for you to make a large down payment.

  2. When planning your home purchase finances, it’s critical to account for closing costs

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