What are my closing costs?
Ryan Ward, Mortgage Banker, explains a simple break down of your typical closing costs.
There are a number of factors that will determine the amount of your closing costs - including type of mortgage, lender, location, and purchase contract. Closing costs will usually consist of the following:
- Lender fees. Expenses charged by the lender for obtaining the loan, including an loan origination fees, appraisal fee, a credit report fee, and discount points.
- Third party fees. Charges for services not provided by your lender often include the escrow services, title insurance, and attorney’s fees.
- Prepaid items. Certain mortgage costs must be paid to your lender in advance. The most common of these are pre-paid interest, hazard insurance, and deposits to set up an escrow account.