Worked example: Closing Cost in North Dakota

6 min read

Published April 15, 2026 • By DocketMath Team

This article is for informational purposes only and does not constitute legal advice. Laws change frequently — verify all citations with current official sources.

Example inputs

Run this scenario in DocketMath using the Closing Cost calculator.

Below is a worked example showing how DocketMath can help you estimate closing costs in North Dakota (US-ND) using jurisdiction-aware rules. This is an illustration of calculation mechanics—not legal advice. Actual lender charges, title company fees, and settlement practices can differ based on your specific transaction and provider quotes.

Scenario (purchase transaction)

Assume you’re buying a home in North Dakota with the following baseline numbers:

Purchase price: $350,000
Down payment: $70,000
Loan amount: $280,000
Loan type: Conventional (fixed-rate), owner-occupied
Term: 30 years
Estimated interest rate: 6.50%
Property tax estimate: $4,200/year
Homeowners insurance estimate: $1,800/year
Escrow configuration: Initial escrow set to cover 3 months of estimated tax and insurance (common lender practice; DocketMath models this as an input-driven assumption)
Title & settlement (policy/fee bundle): $1,800 (provider quote estimate)
Recording/municipal fees (lumped estimate): $250 (provider quote estimate)
Origination/processing fees (lumped): $950
Prepaids: included within escrow/initial cash portion where applicable

Taxes and insurance assumptions (for escrow)

DocketMath typically needs estimates that feed into escrow-funded prepaids. Here’s the monthly carry:

Monthly tax: $4,200 / 12 = $350
Monthly insurance: $1,800 / 12 = $150
Combined monthly escrow: $350 + $150 = $500

Then for 3 months initial escrow:

Initial escrow cash: $500 × 3 = $1,500

Fees that generally aren’t “percent of loan”

Some charges are modeled as fixed-dollar items (from quotes or estimates). For this example, we use:

Title & settlement: $1,800
Recording/municipal fees: $250
Origination/processing: $950

So fixed fees subtotal:

$1,800 + $250 + $950 = $3,000

Note: North Dakota closing cost totals can shift a lot depending on what your lender and settlement agent bundle together (for example, whether certain services are categorized as “prepaid” vs. “closing fee”). In DocketMath, you control that classification through the closing-cost inputs so you can match your estimate to how the numbers appear on your loan estimate.

Example run

You can reproduce this workflow with DocketMath’s closing-cost calculator here: /tools/closing-cost.

Run the Closing Cost calculator using the example inputs above. Review the breakdown for intermediate steps (segments, adjustments, or rate changes) so you can see how each input moves the output. Save the result for reference and compare it to your actual scenario.

Step-by-step inputs to DocketMath

Use US-ND jurisdiction-aware mode (US-ND rules). Then enter:

Loan & price

Purchase price: 350000
Down payment: 70000
Loan amount: 280000 (or let the calculator derive it)
Estimated interest rate: 6.50%

Escrow assumptions

Property tax estimate: 4200/year
Homeowners insurance estimate: 1800/year
Initial escrow months: 3

**Fee estimates (quote-driven)

Title & settlement: 1800
Recording/municipal: 250
Origination/processing: 950

Calculated outputs (example)

While DocketMath’s internal model may group categories slightly differently, the conceptual breakdown usually looks like this:

1) Initial escrow cash (tax + insurance)

Monthly combined escrow: $500
Initial escrow (3 months): $1,500

Output bucket: “Prepaid/escrow-funded at closing”

$1,500

2) Fixed closing-related fees

Title & settlement: $1,800
Recording/municipal: $250
Origination/processing: $950

Output bucket: “Settlement/closing fees (estimate)”

$3,000

3) Down payment contribution (cash to close, simplified)

In this simplified view, estimated cash to close is modeled as:

Down payment + initial escrow cash + fixed closing fees
(Note: prorations for items like rents/credits/HOA adjustments may be handled separately depending on your statement and inputs.)

In this example:

Down payment: $70,000
Initial escrow cash: $1,500
Fees: $3,000

Estimated cash to close (simplified):

$70,000 + $1,500 + $3,000 = $74,500

Summary table (this example)

Category	Inputs used	Result
Initial escrow cash	Tax $4,200/yr + Insurance $1,800/yr; 3 months	$1,500
Title & settlement	Quote estimate	$1,800
Recording/municipal	Quote estimate	$250
Origination/processing	Quote estimate	$950
Fixed fees subtotal	Sum of above	$3,000
Down payment	Scenario input	$70,000
Estimated cash to close (simplified)	Down + escrow + fees	$74,500

Warning: This “cash to close” view doesn’t automatically include every possible line item that can appear on a settlement statement (for example, prorations for prepaid rents, HOA adjustments, or lender-specific credits/discounts). If those appear in your documents, add them as separate fee/proration inputs in DocketMath so categories stay accurate.

Sensitivity check

The biggest swing factors in a closing-cost estimate are usually initial escrow months, property tax and insurance estimates, and fee inputs (title/recording/origination).

To test sensitivity, change one high-impact input (like the rate, start date, or cap) and rerun the calculation. Compare the outputs side by side so you can see how small input shifts affect the result.

A) Vary initial escrow months (most impactful for escrow-funded cash)

Keep fee estimates constant ($3,000) and keep down payment constant ($70,000). Only change initial escrow months.

Escrow math:

Combined monthly escrow = $500
Initial escrow cash = $500 × months

Initial escrow months	Initial escrow cash	Cash to close (simplified)
2 months	$1,000	$70,000 + $1,000 + $3,000 = $74,000
3 months (base)	$1,500	$74,500
4 months	$2,000	$70,000 + $2,000 + $3,000 = $75,000

Impact: moving 2 → 4 months shifts cash to close by $1,000 in this example.

B) Vary annual property tax estimate (tax uncertainty)

Assume initial escrow months stay at 3 and insurance stays at $1,800/year.

If property tax is $3,600/year:

Monthly tax: $3,600 / 12 = $300
Monthly escrow: $300 + $150 = $450
Initial escrow: $450 × 3 = $1,350
Cash to close: $70,000 + $1,350 + $3,000 = $74,350

If property tax is $5,000/year:

Monthly tax: $5,000 / 12 ≈ $416.67
Monthly escrow: $416.67 + $150 ≈ $566.67
Initial escrow: $566.67 × 3 ≈ $1,700
Cash to close: $70,000 + $1,700 + $3,000 = $74,700

Impact: roughly a $350 swing in cash to close across this tax range, driven by escrow-funded prepaids.

C) Vary title/recording/origination fee quotes (provider-driven)

If your fixed fee bundle changes:

Current fixed fees: $3,000
Suppose title/settlement comes in at $2,400 instead of $1,800 (+$600)

Then fixed fees become $3,000 + $600 = $3,600, and cash to close becomes:

$70,000 + $1,500 + $3,600 = $75,100

Impact: in this model, fixed fees change cash to close roughly one-for-one.

D) Quick checklist to tighten your estimate

Before you treat the result as “close enough,” verify:

Pitfall: If you understate property taxes or insurance, you’ll typically understate the initial escrow cash. Even if everything else is correct, that can be the difference between an on-time closing and a last-minute funding gap.