How much cash do I need on closing day when I buy a home in the United States?

Closing costs, not including the down payment, typically range from 2 percent to 5 percent of the purchase price. The actual amount depends on the price, the down payment, the lender's costs, the kind of loan, the kind of home, and the location. In most cases you need a down payment of at least 3 percent. Many loans require 5 percent or more. You often save if you put down at least 10 percent, and you save the most at 20 percent. Example only. Not a quote. On a $400,000 purchase, 2 percent is $8,000 and 5 percent is $20,000. A 3 percent down payment is id="content"2,000. A 20 percent down payment is $80,000. Plan for the down payment plus the closing-cost range. The figures at this stage are not precise.

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