Closing Costs
Closing costs are the various fees and charges you pay to finalize a mortgage and complete the purchase of a home.
They typically include lender charges like loan origination and discount points, plus third-party services such as the appraisal, title search, title insurance, and government recording fees. Altogether they often run somewhere in the range of a few percent of the loan amount, though the exact figure depends on your location, lender, and loan size.
You usually pay closing costs at the closing table, though some can be rolled into the loan or covered by the seller. Reviewing your loan estimate early helps you plan. Some of these costs also factor into your APR.
Related terms: Annual Percentage Rate (APR), Discount Points
