What are closing costs?
Closing costs are expenses associated with completing a property purchase and, where applicable, arranging financing. The exact items depend on location, lender, property and transaction.
What can be included?
Depending on the transaction, costs may include lender charges, appraisal or valuation costs, title or legal services, recording or transfer charges, prepaid items, insurance-related amounts and other third-party services.
Buyer and seller costs
Which party pays a particular cost can depend on local practice, contract terms and applicable rules. Some costs may be negotiated while others are set by service providers or government authorities.
Plan beyond the down payment
Keeping closing costs separate from the down-payment estimate helps avoid overstating the cash available for the purchase itself. Also preserve room for moving, repairs and early ownership expenses.
Use the Closing Cost Calculator and Down Payment Calculator together when planning.
Closing costs vary significantly by transaction and jurisdiction. Estimates are educational and are not a settlement statement or quote.