Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Closing costs are charges related to the purchase of a real estate that go beyond the actual sales price of the property in question.
Where closing costs come from
Closing costs can accumulate in one of two categories:
- The origination of a loan -- Closing costs of this nature involve the actual creation of a home loan and the fees associated with the lending process.
- Property costs -- There are certain requirements of a loan that might directly involve the property. These requirements can tack on to the total price of purchasing a property and might show up in the form of closing costs.
Who pays closing costs?
The actual responsible party for closing costs is generally the borrower. There are some situations, however, where the seller or the lender might pay some or all of the associated costs of closing a real estate transaction.
What might figure into closing costs?
There are a number of charges that can be added into closing costs. The total amount to anticipate in this type of fee is between 3 and 6 percent of the total amount of money borrowed. Some of the charges that might appear in closing costs include:
- Should You Refinance? Make Sure the Timing is Right
- Alternatives to Getting a 2nd Mortgage
- Second Mortgages: Advantages and Disadvantages
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Factors that Can Negatively Affect Your Mortgage Application
- 3 Warning Signs of Loan Modification Scams
- 3 Common Short Sale Mistakes
- How to Get Approved for an FHA Loan despite Bad Credit
- Short Selling a Rental Property