Closing Cost

What are typical closing costs?

You can expect to pay the following closing costs at the time of settlement:


Consider refinancing when rates fall two percent below your current rate and you plan on staying in your home at least 18 months more.

  • Appraisal fee -- covers the cost of a professional written estimate of the property's value.
  • Attorney's or escrow fees -- your own and the lender's if they have one.
  • Credit report fee.
  • Points (see Question 76).
  • Documentation preparation -- covers the cost of preparing the deed and other paperwork.
  • First year's premium on fire and hazard insurance.
  • Impounds (also known as "escrow account") -- sufficient to cover real estate taxes on the purchased property for the current tax period to date. The lender then pays these bills when they come due.
  • Interest -- paid from the date of closing until 30 days before your first monthly payment.
  • Title insurance.
  • Mortgage insurance if required.
  • Origination fee -- covers the lender's administrative costs.
  • Recording fees.
  • FHA mortgage insurance (FHA loans only).
  • VA guarantee fees (VA loans only).

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