Term: Closing Costs
« Back to Glossary IndexCosts payable by both seller and buyer at the time of settlement, when the purchase of a property is finalized. These costs can be up to ten percent of the mortgage amount and usually include but are not limited to the following:
Fees Paid to the Lender
- Origination fee
- Discount points
- Credit report fee
- Appraisal fee
- Assumption fee if loan is assumed
Fees Paid in Advance
- Interest from the closing date to the beginning of the 1st payment
- Hazard insurance premium
- Mortgage insurance premium
Other Charges
- Title search and title insurance
- Sales commissions
- Legal and recording fees
- Inspection and survey fees
- Property taxes and other adjustments
- Processing and document preparation fees