Closing costs
The fees and charges due when a mortgage closes — origination, title, escrow, appraisal, prepaids and more — typically 2–5% of the purchase price for buyers.
What does closing costs mean?
Closing costs are the one-time charges that settle a mortgage, separate from your down payment, and they fall on both sides of the table. A buyer typically pays origination, appraisal, title, recording and prepaid escrow items; a seller usually covers the agent commission and transfer taxes. On a purchase they commonly run 2–5% of the price, so they are worth estimating before you make an offer.
Frequently asked
How much are closing costs?
For buyers they typically run 2–5% of the purchase price — roughly $6,000–$15,000 on a $300,000 home — covering origination, appraisal, title, escrow and prepaid taxes and insurance. The exact figure varies widely by state, mostly because of transfer taxes.
Can closing costs be rolled into the loan?
Sometimes. On a refinance you can often finance them into the balance; on a purchase you usually pay them in cash, but you can ask the seller for a credit or take a lender credit in exchange for a slightly higher rate.
Who pays closing costs, the buyer or the seller?
Both, on different items. Buyers pay origination, appraisal, title and prepaids; sellers usually pay the agent commission and transfer taxes. In a buyer’s market you can negotiate a seller concession toward your costs.
Put it to use
Home Closing Cost Calculator
Estimate the closing costs a buyer pays: origination, title, escrow, appraisal and prepaids.
Mortgage Calculator with Taxes & Insurance
See your full PITI payment: principal, interest, property tax, homeowners insurance, PMI and HOA dues.
Mortgage Points Calculator
Decide whether buying discount points to lower your rate pays off, and how long it takes.
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