Home Buying

What Are Closing Costs?

Closing costs are the fees and expenses paid when finalizing a real estate purchase or refinance, on top of the down payment. They typically include lender fees, appraisal, title insurance, attorney or escrow fees, recording fees, and prepaid taxes and insurance. For US home buyers they commonly total about 2% to 5% of the purchase price.

What Is Included

Typical items are loan origination and underwriting fees, credit report and appraisal fees, title search and title insurance, settlement or attorney fees, government recording fees, and prepaid items such as the first months of property tax and insurance.

Where the Exact Amount Comes From

In the United States, lenders provide a Loan Estimate early in the process and a Closing Disclosure at least three business days before closing, listing the final figures.

🧮 Calculate It Yourself

Put Closing Costs into practice with these free calculators — no sign-up, nothing stored.

🏡 Closing Costs Calculator Estimate the one-time costs due when you close on a home purchase. Calculate → 🏡 Home Affordability Calculator Find the home price range you can realistically afford. Calculate → 🏠 Mortgage Calculator Estimate your monthly mortgage payment including taxes, insurance, and PMI. Calculate →

🔗 Related Terms

Down Payment Escrow Account Mortgage Refinancing

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.