Closing Costs
Closing costs are the fees and charges associated with finalizing a mortgage transaction, typically ranging from 2% to 5% of the loan amount.
These costs include lender fees (origination, underwriting, processing), third-party fees (appraisal, title insurance, credit report), government fees (recording, transfer taxes), and prepaid items (homeowners insurance, property taxes, per diem interest).
Closing costs are not the same as your down payment. They are separate charges required to process, insure, and close the loan. Some closing costs are negotiable, and some can be covered by seller concessions or lender credits.
Why This Matters: Understanding what you are paying — and why — gives you the ability to compare offers accurately and negotiate with confidence. Never accept a loan estimate without reviewing every line item.
Want this applied to your situation?
Understanding a term is one thing. Knowing how it affects your loan, your rate, or your closing costs is another. Kara can walk you through exactly how this applies to your file — in plain language, in 30 minutes.
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