What is Closing Costs?
Closing costs are the various fees, beyond the down payment, that buyers and sellers pay to complete a transaction — including lender fees, escrow and title charges, appraisal fees, recording fees, and prepaid taxes or insurance. As a rough guide, buyer closing costs often run a few percent of the price, though it varies. They are due at closing.
Example: On a $500,000 purchase, a buyer’s closing costs — loan fees, title, escrow, and prepaids — total around $12,000, due at close of escrow.