Legal sources
Buying a home in the United States costs more than the price and the down payment. At closing, the buyer pays lender fees, prepaid interest, a first deposit into the escrow account, title insurance and recording fees; the seller usually pays the transfer tax and the agents. Each month the buyer pays PITI: principal, interest, property tax and homeowners insurance, plus private mortgage insurance (PMI) when the down payment is small. Federal law sets when PMI ends, how escrow accounts work and how the annual percentage rate (APR) is calculated; property tax and transfer tax follow state and local law. Each default below cites its law or regulation, the section and the date last verified, or is marked as a market convention. California is the only state covered so far; for another state, you enter the state and local amounts. Titles and section numbers are as published, so you can look up the official text.
| Item | Document | Provision | Last verified | Link |
|---|---|---|---|---|
| Origination fee | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Discount points | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Appraisal | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Prepaid interest | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Initial escrow deposit | Source: RESPA, Regulation X, 12 CFR §1024.17RESPA, Regulation X, 12 CFR §1024.17 | Provision: §1024.17(c)(1)(i)§1024.17(c)(1)(i) | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| Lender's title insurance | Source: state filed rates (California: see region table)state filed rates (California: see region table) | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Owner's title insurance | Source: state filed rates (California: see region table)state filed rates (California: see region table) | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Settlement fee | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Recording fees | Source: county recorder fees set by state law (California: see region table)county recorder fees set by state law (California: see region table) | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| County transfer tax | Source: state and local law (California: see region table)state and local law (California: see region table) | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| City transfer tax | Source: city ordinancecity ordinance | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Seller's agent commission | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Buyer's agent commission | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| LTV above which PMI applies | Source: 12 U.S.C. §1717(b)(2)12 U.S.C. §1717(b)(2) | Provision: Conventional 1–4 family loans bought by the federally chartered secondary-market corporation need credit enhancement above 80 % of valueConventional 1–4 family loans bought by the federally chartered secondary-market corporation need credit enhancement above 80 % of value | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| PMI rate per year | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Typical PMI rate range | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Balance at which you can ask to cancel PMI | Source: Homeowners Protection Act, 12 U.S.C. §4901–4902Homeowners Protection Act, 12 U.S.C. §4901–4902 | Provision: §4901(2) "cancellation date"; §4902(a): written request, good payment history, current, no decline in value, no subordinate lien§4901(2) "cancellation date"; §4902(a): written request, good payment history, current, no decline in value, no subordinate lien | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| Balance at which PMI ends automatically | Source: Homeowners Protection Act, 12 U.S.C. §4901–4902Homeowners Protection Act, 12 U.S.C. §4901–4902 | Provision: §4901(18) "termination date" (fixed rate: initial amortization schedule; ARM: the schedule then in effect); §4902(b)§4901(18) "termination date" (fixed rate: initial amortization schedule; ARM: the schedule then in effect); §4902(b) | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| PMI end at the midpoint of the loan term | Source: Homeowners Protection Act, 12 U.S.C. §4901–4902Homeowners Protection Act, 12 U.S.C. §4901–4902 | Provision: §4902(c)§4902(c) | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| Monthly escrow payment | Source: RESPA, Regulation X, 12 CFR §1024.17RESPA, Regulation X, 12 CFR §1024.17 | Provision: §1024.17(c)(1)(ii)§1024.17(c)(1)(ii) | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| Maximum escrow cushion | Source: RESPA, Regulation X, 12 CFR §1024.17RESPA, Regulation X, 12 CFR §1024.17 | Provision: §1024.17(c)(1)(i) at settlement, (c)(1)(ii) during the loan§1024.17(c)(1)(i) at settlement, (c)(1)(ii) during the loan | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| APR calculation method | Source: Truth in Lending Act, Regulation Z, 12 CFR Part 1026Truth in Lending Act, Regulation Z, 12 CFR Part 1026 | Provision: §1026.22(a)(1)–(3); Appendix J§1026.22(a)(1)–(3); Appendix J | Last verified: Oct 2, 2026Oct 2, 2026 | Read the text (opens in a new tab) |
| Prepayment penalty | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| ARM types: 5/6, 7/6, 10/6 | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| ARM rate caps | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| ARM index rate (SOFR), example | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026Default value. Ask your lender or tax office for the figure that applies to you. | ||
| ARM margin, example | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Base property tax rate | Source: state and local law (California: see region table)state and local law (California: see region table) | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| Local levies on top | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Home insurance per year | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| HOA dues per month | Market convention, no legal document | Last verified: Oct 2, 2026Oct 2, 2026 | ||
| Maximum debt-to-income ratio (DTI) | Market convention, no legal document | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| Maximum loan-to-value (LTV) | Market convention, no legal document | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| Value-added tax (VAT) on rent: none in the US | Market convention, no legal document | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| Income tax on rent, example rate | Market convention, no legal document | Last verified: Oct 3, 2026Oct 3, 2026 | ||
| Tax threshold for rental income: none | Market convention, no legal document | Last verified: Oct 3, 2026Oct 3, 2026 |