Calculate closing costs, total acquisition cost and your monthly mortgage payment for resale or new construction property in the USA.
Rates 2026
The asking price is not what a purchase in the United States actually costs: on a property of $350,000.00, acquisition costs come to $7,750.00, or 2.2 % of the price. They break down into Title Insurance, Escrow Fees, Recording Fees. These are paid in cash on top of the deposit and cannot be borrowed, which is the usual surprise for a first-time buyer and often runs into tens of thousands. On the financing side, at a rate of 6.50 %, borrowing over 30 years after a deposit of $70,000.00 gives a monthly payment of $1,900.30 including insurance. The calculator below recalculates all of it on your own price, deposit and term, and the table breaks out every fee line by line, because that is where most of the difference between one country and another sits, far more than in the interest rate itself.
Buying property in the United States involves specific closing costs: title insurance, escrow fees, transfer tax and more. Understanding these fees helps you better plan your budget, whether you are a US resident or a foreign buyer.
Closing costs are the fees paid at the finalization of a real estate transaction in the United States. They typically range from 2% to 5% of the purchase price, depending on the state and property type. These include title insurance, escrow fees, recording fees, transfer tax, appraisal and attorney fees. Unlike France, there is no notaire: a title company or escrow agent manages the transaction.
Title insurance is unique to the American system and protects the buyer and lender against title defects: undisclosed mortgages, public record errors, contested heirs and hidden easements. In the US, it costs approximately 0.5% of the purchase price and is a one-time payment at closing. There are two types: lender's title insurance (required with a mortgage) and owner's title insurance (recommended to protect your investment).
Property tax is a major recurring cost for every homeowner in the United States. The rate varies considerably by state: from 0.28% in Hawaii to over 2.2% in New Jersey. The national average is around 1.1% of the assessed property value. Unlike France, property tax is often included in your monthly mortgage payment through an escrow account. Always check the county property tax rate before buying.
In the United States, the two most common mortgage terms are 15 years and 30 years. A 30-year mortgage offers lower monthly payments but much higher total interest costs. For example, on a $280,000 loan at 6.5%, the monthly payment is around $1,770/month over 30 years (total interest: ~$357,000) versus $2,440/month over 15 years (total interest: ~$159,000). The 15-year rate is typically 0.5 to 1 point lower. The choice depends on your monthly repayment capacity and wealth-building strategy.
It is entirely possible for a non-resident foreigner to buy property in the United States. No nationality restrictions apply. However, obtaining a mortgage as a non-resident is more complex: banks typically require a 30 to 50% down payment, a higher interest rate (+0.5 to 1.5%), and additional documentation (visa, passport, overseas bank statements). Be aware of FIRPTA (Foreign Investment in Real Property Tax Act): upon resale, a 15% withholding tax on the sale price applies to foreign sellers.
Closing costs vary significantly from state to state in the US. Some states like New York have high transfer taxes (up to 1.4% plus a 1% mansion tax above $1M). Others, like Texas, have no transfer tax but some of the highest property taxes (~1.8%). In California, transfer tax is relatively low (0.11%) but prices are very high. Some states require an attorney at closing (New York, Connecticut, Massachusetts), others do not. Research the specifics of your target state before buying.
PMI (Private Mortgage Insurance) is required by US lenders when the down payment is less than 20%. It costs between 0.5% and 1.5% of the loan amount per year, added to your monthly payment. PMI can be automatically cancelled when the loan balance reaches 78% of the original property value. To avoid PMI, you can make a 20% down payment or opt for a piggyback loan (a 10-15% second mortgage).
HOA fees (Homeowners Association fees) are the equivalent of co-ownership charges. They apply in condominiums, gated communities and certain residential neighborhoods. Monthly fees range from $200 to $1,000+ depending on amenities (pool, gym, security, common area maintenance). Before buying, review the CC&Rs (Covenants, Conditions & Restrictions) and the HOA's financial health. High or mismanaged fees can affect your property's resale value.
Detailed comparison of each closing cost component between resale and new construction purchases.
| Component | Resale | New Build | Detail |
|---|---|---|---|
| Title Insurance | 0.5% | 0.5% | Protection against title defects |
| Escrow Fees | 0.3% | 0.3% | Neutral third-party (escrow agent) fees |
| Recording Fees | ~$200 | ~$200 | Filing with the county recorder's office |
| Transfer Tax | 0.5% | 0.5% | Property transfer tax (varies by state) |
| Home Inspection | ~$500 | - | Professional property inspection (resale only) |
| Appraisal | ~$500 | ~$500 | Property valuation required by lender |
| Attorney Fees | ~$1,500 | ~$1,500 | Attorney fees (required in some states) |
| Builder Warranty | - | ~$500 | Builder's warranty (new construction only) |
| Miscellaneous | ~$500 | ~$500 | Credit report, flood cert, courier, etc. |
| Estimated total | ~1.5-2% | ~1.5-2% | Percentage of property price |
Get a pre-approval letter from a lender. This determines your borrowing capacity and shows sellers you are a serious buyer. Pre-approval considers your credit score, income, debt-to-income ratio (DTI) and down payment. It is typically valid for 60 to 90 days.
Submit a purchase offer with an earnest money deposit (1 to 3% of the price). If accepted, the property goes "under contract". This is followed by an inspection period (due diligence) of 7 to 14 days during which you arrange the home inspection and appraisal.
Closing typically occurs 30 to 45 days after offer acceptance. You sign the loan documents, pay closing costs and the down payment. Keys are handed over after the deed is recorded at the county recorder's office. The title company ensures the transfer of ownership is properly completed.
Your credit score (FICO score) is a measure of financial reliability, rated from 300 to 850. To get the best mortgage rates, a score above 740 is recommended. Below 620, it will be difficult to get a conventional loan. Each score bracket affects the rate: a score of 760+ can get a rate 0.5 to 1 point lower than a 660 score. Lenders also review your payment history, credit utilization and account age.
Yes, several closing costs are negotiable. You can ask the seller to cover part of the fees (seller concessions), typically up to 3-6% of the price. Lender fees are often negotiable: compare Loan Estimates from multiple lenders. Title insurance and escrow fees can also vary between providers. Tip: ask for a "no closing cost" mortgage where fees are rolled into a slightly higher rate.
A fixed-rate mortgage has a constant rate for the entire loan term (15 or 30 years). An ARM (Adjustable-Rate Mortgage) offers a lower initial rate for 5, 7 or 10 years, then adjusts periodically based on a benchmark index. For example, a 5/1 ARM has a fixed rate for 5 years then adjusts annually. Fixed-rate is safer; an ARM is attractive if you plan to sell or refinance before the fixed period ends.
The minimum down payment depends on the loan type. A conventional loan typically requires 5 to 20%. FHA loans (Federal Housing Administration) accept as little as 3.5% with a minimum credit score of 580. VA loans (for veterans) and USDA loans (rural areas) allow 0% down. Reminder: a down payment under 20% triggers PMI (Private Mortgage Insurance).
An escrow account is managed by your lender and collects monthly funds to pay your property tax and homeowner's insurance. Your total monthly payment thus includes PITI: Principal, Interest, Taxes, Insurance. The lender pays these charges on your behalf when due. It is mandatory with less than 20% down and optional above. This saves you from having to save separately for these large annual expenses.
Beyond the mortgage, American homeowners pay: property tax (annual, ~1.1% on average), homeowner's insurance ($1,200-$3,000+/year depending on region), any HOA fees, and maintenance (budget 1% of property value/year). Mortgage interest and property tax are tax-deductible (itemized deductions), subject to limits of $750,000 in mortgage debt and $40,400 in SALT (State And Local Taxes) for 2026, with the cap reduced above $505,000 of income.
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5% to 1.5% of the original loan amount per year, added to your monthly payment. You can avoid PMI by making a 20% down payment, choosing a VA loan (for veterans, no PMI required), or opting for a piggyback loan (80-10-10 structure). Once you reach 20% equity through payments or appreciation, you can request PMI cancellation.
All fees paid at the closing of a real estate transaction: title insurance, escrow fees, transfer tax, appraisal, attorney fees, etc. Typically 2 to 5% of the purchase price.
Account managed by a neutral third party (escrow agent or title company) that receives and distributes funds during the transaction. Also collects monthly tax and insurance payments.
Insurance protecting buyer and lender against title defects (hidden mortgages, recording errors, disputes). Paid once at closing.
Professional valuation of the property's market value, required by the lender to ensure the loan amount does not exceed the actual property value.
Private mortgage insurance required when the down payment is below 20%. Costs 0.5 to 1.5% of the loan per year. Can be cancelled when equity reaches 20%.
Homeowner association managing common areas in a condominium or neighborhood. Monthly fees cover maintenance, security and amenities (pool, gym, etc.).
Private database used by real estate agents to list properties for sale. Sites like Zillow, Redfin and Realtor.com pull their data from the MLS.
Conditional commitment from a lender to grant you a mortgage up to a given amount, after verifying your income, credit score and financial situation. Valid 60 to 90 days.
Good faith deposit made by the buyer when submitting an offer (1 to 3% of price). Shows the seriousness of the offer. Held in escrow and credited toward the final price at closing.
Insurance required by US lenders when the down payment is below 20%. Protects the lender against default and adds 0.5–1.5% annually to the loan cost. Can be cancelled once the borrower reaches 20% equity in the property.
Organization in a residential community that manages common areas and enforces community rules. HOA fees range from $200 to $1,000+ per month and cover amenities, landscaping, and exterior maintenance. Must be factored into affordability calculations.