What Are “Closing Costs” and How Much Should
I Expect to Pay?
Depending on your area, the price of your home, your lender's
terms, and other factors, your closing costs will vary. A Realtor
can only provide a rule-of-thumb figure for your particular situation.
Also, your lender will give you a pre-settlement "good faith" estimate
of specific costs. This estimate is sometimes low. Take extra
funds just in case.
However, closing costs generally include the following:
Loan origination fee (usually 1% of your mortgage amount)
Discount point(s) - Each point is 1% of your mortgage amount
Assumption fee if you assume the seller's loan
Cost of a title insurance
Lender's title insurance fee
Owner's title insurance fee (optional but advisable)
Survey fee (if applicable)
Transfer tax (state and/or local tax and tax stamps in some
areas)
Lender's appraisal fee
Recording fees for settlement documents
Prepaid interest on your mortgage, covering the time between
