What are closing costs?
Closing costs are those costs that usually incurred at the time of closing. Closings are usually conducted by attorneys, although they are not required. The attorney will handle all aspects of the closing and will solve the paperwork nuisances that sometimes crop up. The costs incurred at a farms or acreage closing usually include attorneys fees, intangible tax, pro-rata share of ad valorem taxes, real estate commission, and recording fees and any loan origination fees. Many real estate closings are done for well under $500. Often the most expensive costs are the attorneys fees and, depending on the size of the loan, the intangibles tax. Attorneys fees vary with the attorney but usually range from $250 to $350 on most simple transactions. This can change depending on the complexity of the closing. Intangibles tax is a tax paid to the state based on the amount of the loan. The amount varies from state to state but in Georgia it is calculated at $1.50 per $500 in loaned funds.
Closing costs are expenses that are paid during closing or settlement that are in addition to your down payment, pre-paid property tax and homeowners insurance. Closing costs vary, please speak with a Mortgage Advisor for more details. The borrower usually pays closing costs associated with a Mortgage. Some purchase mortgages allow for the seller to pay some portion of the closing costs. There are closing costs associated with both purchase and refinance mortgages.
(back to top) Closing costs are sometimes also called settlement costs. These are the costs a lender charges for funding and completing your loan and are generally charged at the time of closing (or settlement). They often include discount points, which are fees paid to lower your interest rate. Settlement costs/closing costs vary greatly depending on your state, county, and/or metropolitan area. They also vary from one lender to another, so it pays to shop around.
Closing costs are the costs and fees associated with buying a home or other real estate. Your closing costs typically average about 3-4% of the price of your home. These costs cover the fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise, and before the closing date your lender is required to give you a good faith estimate of the amount of money you will need for the closing.
