Closing Costs / Fees

Mortgage closing costs and fees include appraisal, funding / origination fees, title company fees, title insurance, and others.

Closing costs will vary, depending upon the financing costs and the time of the month that you close. Your Realtor or lender will be able to give you an estimate of all these costs, including the points on your loan, private mortgage insurance (if required), the title search, title insurance, attorneys' fees, and any transfer taxes or recording fees changed by local government agencies. There may also be property taxes, homeowners' association fees and insurance that must be prepaid.

There is a federal law which requires mortgage lenders to give prospective buyers an itemized, "good-faith" estimate of their closing costs. Sometimes buyers arrive at the closing with this document firmly clutched against their chests, and proceed to question each item on the form that does not match perfectly. These "good-faith" estimates are just that--estimates. The lender's charges will be fairly accurate, but the charges for attorneys, termite inspections, title insurance, and other items that appear on the closing sheet may be a little bit different. Some pro-rated items, such as taxes or homeowner's association fees, will also be different if you don't close on the date that was used to calculate the estimate. The purpose of the disclosure law is to give you a ball park figure of your closing costs. But the estimate you are given won't be to the penny--probably not even to the dollar!

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