Home Loans 101: What are Closing Costs?
Let's talk about "closing costs."
Closing costs involve the expenses that a buyer pays, which are over and above the property's price. This fee covers the cost of services related to processing and securing the loan, including a title search, appraisal, discount points, deed recording, and origination fees. Generally speaking, closing costs amount to about 3-5% of the property's purchase price.