Closing Costs

The fees charged in connection with a mortgage loan transaction. Money paid by a buyer (and/or seller or other third party, if applicable) to effect the closing of a mortgage loan, generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney's fee, and prepaid items, such as escrow deposits for taxes and insurance.

Costs payable by both seller and buyer at the time of settlement, when the purchase of a property is finalized. These costs can be up to ten percent of the mortgage amount and usually include but are not limited to the following:

• Fees Paid to the Lender
  • Origination fee
  • Discount points
  • Credit report fee
  • Appraisal fee
  • Assumption fee if loan is assumed
• Fees Paid in Advance
  • Interest from the closing date to the beginning of the 1st payment
  • Hazard insurance premium
  • Mortgage insurance premium
• Other Charges
  • Title search and title insurance
  • Sales commissions
  • Legal and recording fees
  • Inspection and survey fees
  • Property taxes and other adjustments
  • Processing and document preparation fees

Fees for final property transfer not included in the price of the property. Typical closing costs include charges for the mortgage loan such as origination fees, discount points, appraisal fee, survey, title insurance, legal fees, real estate professional fees, prepayment of taxes and insurance, and real estate transfer taxes. A common estimate of a Buyer's closing costs is 2 to 4 percent of the purchase price of the home. A common estimate for Seller's closing costs is 3 to 9 percent.

Various fees and expenses payable by the seller and buyer at the time of a real estate closing (also termed transaction costs), such as brokerage commissions, lender discount points, title insurance premiums, deed recording fees, loan prepayment penalties, inspection and appraisal fees, attorney's fees, etc.

The expenses incurred by sellers and buyers in transferring ownership in real property. The costs of closing may include the origination fee, discount points, attorneys' fees, loan fees, title search and insurance, survey charge, recordation fees, and the credit report charge.

The expenses incurred by sellers and buyers in transferring ownership in real property. The costs of closing may include an origination fee, discount points, attorneys' fees, loan fees, title search and insurance, survey charge, recordation fees, and the credit report charge.

When you purchase real estate, there are expenses - known as closing costs - you pay to finalize the transaction, over and above the cost of the property.

In some cases, the seller may offer to pay certain closing costs to attract buyers or close the sale more quickly. Closing costs vary depending on the area where the property is located and are either prepaid or non-recurring.

Prepaid costs are expenses that recur periodically, including home insurance premiums and real estate taxes.

Non-recurring costs pay for securing a mortgage and transferring the property, and may include a filing fee to record the transfer of ownership, mortgage tax, attorneys' fees, credit check fees, title search and title insurance expenses, home inspection fees, an appraisal fee, and any points, or up-front interest charges, you have agreed to pay the lender.

The lender will give you a good faith estimate (GFE) of your closing costs before the closing date, so you'll know approximately how much money you need to have available at closing - usually 5% to 10% of your mortgage.

Many closing costs are tax deductible, so it's a good idea to consult with your tax adviser.