What are closing costs?
Closing costs are all the fees associated with closing the loan. Typical costs usually include an origination fee(mortgage broker’s fee), discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The costs of closing usually are about 3 percent to 6 percent of the mortgage amount. It’s wise to keep an eye on these costs to make sure you know exactly who’s getting what.
Mortgage closing costs, are fees charged for services that must be performed to process and close your loan application. Examples of mortgage closing cost include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney’s fees, taxes, and surveying fees. The closing cost of a loan will vary depending on your geographic location. Lenders are required by law to disclose in writing, known as a Good Faith Estimate, your estimated mortgage closing costs and fees as a buyer.
Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed.
