Itemized Closing Costs: $400,000 Purchase
Closing cost breakdown on $400K purchase, 10% down, 6.5% conventional
| Cost Item | Amount (Low) | Amount (High) | Notes |
|---|---|---|---|
| Origination fee (1% of $360K loan) | $1,800 | $3,600 | Negotiate down; compare lenders |
| Appraisal | $500 | $800 | Non-negotiable; shop for timing |
| Credit report | $25 | $75 | Minimal |
| Title search + title insurance | $1,800 | $3,500 | Shop title companies for savings |
| Settlement/closing fee | $500 | $1,200 | Attorney vs. title company states |
| Transfer taxes (state avg) | $0 | $8,800 | Varies from $0 to 2.2% of price |
| Recording fees | $75 | $300 | Government fixed |
| HOA transfer fee (if applicable) | $200 | $500 | Varies |
| Total excl. prepaids | $4,900 | $18,775 | Wide range due to transfer taxes |
At $400,000 with a $360,000 loan, buying 1 discount point costs $3,600 and typically reduces rate by 0.25%. Monthly savings: $54/month. Break-even: 67 months (5.5 years). If staying 7+ years, buying 1 point likely makes sense. If staying fewer than 5 years: skip the points and keep the cash.
The Prepaid Cost Layer at $400K
Prepaid items at closing on $400K purchase
| Prepaid Item | Typical Amount | Basis |
|---|---|---|
| Homeowners insurance (12 mo) | $2,400–$4,800 | 0.6–1.2% of home value/year |
| Property tax escrow (2–6 mo) | $2,000–$6,000 | Based on local tax rate |
| Prepaid interest (varies by close date) | $500–$1,800 | Daily rate × days to month end |
Cash Needed Scenarios at $400K
Scenario A (10% down, low-tax state, no points): $40,000 down + $8,000 closing + $6,000 prepaids = $54,000 cash at closing. Scenario B (20% down, high-tax state, 1 point): $80,000 down + $18,000 closing + $7,000 prepaids = $105,000 cash at closing. The variance between scenarios: $51,000 — driven primarily by down payment size and state transfer taxes.
Get Your $400K State-Specific Estimate
Transfer taxes vary enormously by state — get the accurate number for your location.