Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re purchasing a new home or refinancing on your current mortgage. These costs can typically range between 2 to 5 percent of the total loan amount, so it is important to be financially prepared for this expense.
Closing costs include a range of various fees for services related to applying for a mortgage. Some of the fees included in your closing cost may include: loan origination fees, mortgage or discount points, home appraisal, title search, title policy, property insurance and property taxes. Real estate closing fees vary depending on your state, loan type, and lender. Make sure to ask your mortgage lender what the closing costs entail.
