What's included in closing costs?
| Category | Examples | Typical range |
|---|---|---|
| Lender fees | Origination, underwriting, points | 0.5%–1.5% of loan |
| Third-party | Appraisal, credit report, survey | $600–$1,500 |
| Title & escrow | Title insurance, settlement fee | $1,000–$3,500+ |
| Government | Recording fees, transfer taxes | Varies by state |
| Prepaids | Homeowners insurance, property taxes, interest | Several months of costs |
How can I lower closing costs?
- Shop at least three lenders and compare Section A of the Loan Estimate.
- Negotiate seller concessions in your offer.
- Ask about lender credits (in exchange for a slightly higher rate).
- Apply for down payment and closing cost assistance.
- Close near the end of the month to reduce prepaid interest.
Frequently asked questions
On a purchase, closing costs generally can't be added to the loan, except FHA's upfront MIP, the VA funding fee and USDA's guarantee fee. Lender credits and seller concessions are the usual alternatives.
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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.