What Are Closing Costs?

What's inside

Closing costs are the fees and expenses paid when completing a real estate transaction. They typically include lender fees, title insurance, appraisal fees, taxes, government recording fees, and other charges associated with transferring property ownership. Closing costs are usually paid at closing and generally range from 2% to 5% of the home's purchase price, though the amount varies by location and transaction type.

• ✓Lender fees and origination charges
• ✓Title insurance and escrow fees
• ✓Appraisal and inspection fees
• ✓Government recording and transfer taxes
• ✓Typically 2%–5% of the purchase price