What are closing costs?
Closing costs are the costs associated with processing the paperwork to buy a house. Closing costs, which is paid at settlement, averages 3-4% of the amount of your loan. These costs cover various 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 at closing.
Closing costs cover all the charges associated with the transaction, including points, origination fee, appraisal fee, title search fee, title insurance, survey, taxes, deed recording fee, charges for credit reports, etc. Closing costs range between two and six percent of the mortgage amount, depending upon the loan product and fees that are customary in your region.
They are costs that the buyer of a home has to pay at the time of purchase. Closing costs usually include an appraisal fee, title search, and lawyer’s fee. They may also include “points” and other fees (such as one-year homeowner’s insurance and private mortgage insurance, if required). Closing costs are in addition to your down payment and vary slightly from lender to lender.
Closing costs are expenses that are paid during closing or settlement that are in addition to your down payment, pre-paid property tax and homeowner’s insurance. Closing costs vary, please contact 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.
