What are Closing Costs?
Closing cost are the service fees and taxes associated with the mortgage process. On average, closing costs are about 2% – 5% of the home’s purchase price. Closing costs are comprised of several different fees and/or taxes that are either related to the services provided by your mortgage lender, or related to the property itself.
What makes up Closing Costs?
Closing Costs Associated with Your Loan:
- Origination
- Points
- Appraisal
- Credit Report
- Flood Certification
- Title Search & Lender Title Insurance
- Home Inspection
- Postage
- Survey
- Attorney & Closing Fees
Closing Costs Associated with Your Property:
- Government Recording Fee
- Transfer Tax
- Homeowners Insurance
- Up Front Mortgage Insurance
- Daily Interest
- Escrow Homeowners Insurance
- Escrow Property Taxes (3 months)
- Title Insurance