Closing Costs

What are typical closing costs?

You can expect to pay the following closing costs at the time of settlement:

• Appraisal fee — covers the cost of a professional written estimate of the property's value.
• Attorney's or escrow fees — your own and the lender's if they have one.
• Credit report fee.
• Points.
• Documentation preparation — covers the cost of preparing the deed and other paperwork.
• First year's premium on fire and hazard insurance.
• Impounds (also known as "escrow account") — sufficient to cover real estate taxes on the purchased property for the current tax period to date. The lender then pays these bills when they come due.
• Interest — paid from the date of closing until 30 days before your first monthly payment.
• Title insurance.
• Mortgage insurance if required.
• Origination fee — covers the lender's administrative costs.
• Recording fees.
• FHA mortgage insurance (FHA loans only).
• VA guarantee fees (VA loans only).
• REFINANCING TIP

Consider refinancing when rates fall two percent below your current rate and you plan on staying in your home at least 18 months more.

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