Texas buyer closing-cost calculator, with cash to close and no transfer tax built in.
Add the loan costs, title and recording, the appraisal, and the escrow prepaids, then see total closing costs and the cash the buyer brings to the Texas closing table.
A Texas buyer's cash to close equals the down payment plus closing costs and prepaids. Closing costs are loan origination and points, title and recording, the appraisal, and prepaids (escrow reserves plus first-year insurance). Texas has no statewide transfer tax, so do not add one.
Cash to close equals the down payment plus closing costs and prepaids.
Closing costs are the settlement charges only; they do not include the down payment.
Origination and discount points are a percent of the loan amount, not the price.
Prepaids are escrow reserves for taxes and insurance plus the first-year premium.
Recording fees pay the county to record the deed and the deed of trust.
Texas has no statewide real estate transfer tax, so do not add one.
Estimate the buyer's closing costs and cash to close.
Texas has no statewide real estate transfer tax. Do not add a transfer or documentary stamp tax to a Texas buyer's closing costs.
The down payment is part of cash to close but is NOT a closing cost. The exam separates the down payment from settlement charges.
Origination and discount points are a percent of the LOAN amount, not the sale price. One point equals 1% of the loan.
Cash to close equals the down payment PLUS closing costs and prepaids. Closing costs alone exclude the down payment. And in Texas there is no transfer tax to add.
Email the cheat sheet and this calculation.
Get the formula, trap reminders, and your current breakdown in one printable study note.
Where do buyer closing-cost questions go wrong?
The arithmetic is simple addition. The misses come from mixing the down payment into closing costs, basing points on the price, or adding a transfer tax Texas does not have.
Is the down payment a closing cost?
No. The down payment is part of cash to close, but it is not a settlement charge. The exam separates the two, so report closing costs without the down payment.
What base do points use?
Origination and discount points are a percent of the loan amount, not the sale price. Compute the loan first (price minus down payment), then apply the point percentages.
Is there a Texas transfer tax to add?
No. Texas has no statewide real estate transfer or documentary stamp tax. Adding one is a classic out-of-state trap. Texas closing math is prorations, title, recording, loan costs, and prepaids.
What counts as a prepaid?
Prepaids are the escrow reserves the lender collects for property taxes and insurance, plus the first-year hazard insurance premium paid at closing. They are buyer charges separate from the loan fees.
Four buyer closing-cost patterns to know cold.
These cover cash to close, the point base, escrow reserves, and the Texas no-transfer-tax rule.
$300,000 price, 20% down, $9,000 costs
Add the down payment to closing costs for cash to close.
$240,000 loan, 1 origination point
Points use the loan amount, not the $300,000 price.
$6,600 annual tax, 3-month reserve
Reserves are monthly amounts times the number of months collected.
$300,000 Texas purchase
Do not add a transfer or stamp tax to a Texas closing.
The buyer closing-cost mistakes that cost easy points.
Closing math rewards a clean list. Run these checkpoints before you trust the total.
Adding a transfer or documentary stamp tax
Texas has no statewide transfer tax. Florida-style stamp taxes do not apply to a Texas closing.
Counting the down payment as a closing cost
The down payment is part of cash to close, but it is not a settlement charge. Keep them separate.
Basing points on the sale price
Origination and discount points are a percent of the loan amount. Compute the loan first.
Forgetting prepaids and reserves
Escrow reserves and the first-year insurance premium are real buyer charges. Leaving them out understates cash to close.
Reporting closing costs as cash to close
Cash to close is closing costs PLUS the down payment. Reporting only the costs misses the largest line.
What to study next with buyer closing costs.
Buyer costs sit inside settlement math. Pair them with the seller net sheet, prorations, and loan-to-value.
How do you calculate a buyer's cash to close?+
Cash to close equals the down payment plus closing costs and prepaids, minus any credits or earnest money already paid. Closing costs are the settlement charges only and do not include the down payment.
Does Texas have a real estate transfer tax?+
No. Texas has no statewide real estate transfer tax or documentary stamp tax. A Texas buyer's settlement charges are loan costs, title and recording fees, the appraisal, and prepaids. Adding a transfer tax is a common out-of-state trap.
Are discount points based on the price or the loan?+
Origination and discount points are a percent of the loan amount, not the sale price. One point equals 1% of the loan. Compute the loan first (price minus down payment), then apply the point percentages.
What are prepaids at closing?+
Prepaids are the escrow reserves the lender collects for property taxes and hazard insurance, plus the first-year insurance premium paid at closing. They are buyer charges separate from the loan origination fees.
Is this buyer closing-cost calculator for a real purchase?+
No. It is built for Texas real estate exam preparation. A real closing uses the lender's Loan Estimate and Closing Disclosure, the title company's fee schedule, and the county's recording charges.
A buyer pays $250,000 with 10% down. Closing costs and prepaids total $7,400. What is the cash to close?
Down payment: 250,000 x 10% = $25,000. Cash to close: 25,000 + 7,400 = $32,400. No transfer tax is added in Texas.