What is Closing Costs?
Fees paid at mortgage closing, typically 2-5% of the loan amount, including origination and processing fees, appraisal, title insurance, and prepaid taxes.
Closing costs are fees and expenses paid when finalizing a mortgage, typically ranging from 2-5% of the loan amount. They include origination and processing fees, third-party fees (appraisal, title insurance, attorney), prepaid items (property taxes, insurance), and government fees (recording). Some costs are negotiable or can be rolled into the loan.