This page outlines the estimated closing costs for purchases, refinances, and new construction loans. The term “closing costs” when used by the layman typically means the amount of money due at closing. However, the money due at closing is comprised of three components: 1) the mortgage down payment, 2) the actual closing costs which are the fees to close the loan, and 3) the mortgage prepaids which are the taxes, insurance, HOA, and per diem interest.
Closing Costs Overview
How much are closing costs when buying, selling, or refinancing a home? Here’s a breakdown the home closing costs, prepaids, and money due at closing. There are three components that make up the monies due at closing:
- Down payment (or equity for refinances)
- Cost for the home loan (i.e. the fees)
There are a variety of different methods to pay for closing costs and it’s our job as mortgage pros to help you determine which is right for you.
The amount of the down payment is determined by the borrower. Check out our section on mortgage down payment for options and recommendations.
The closing costs are the actual fees for the home loan and will vary depending on the purpose, product, and loan structure. The reason we don’t include the down payment or the prepaids as “closing costs” is because those aren’t technically fees. The down payment is equity in the home and most of the prepaids would be paid regardless if you paid cash for the home or acquired a mortgage. See “Closing Costs” below for more details.
The mortgage prepaids consist of property taxes, homeowners insurance, HOA dues and transfer fees, and per diem interest. The amounts vary based on a variety of factors: program, loan structure, etc..
Closing Costs for Windsor Homes
Prepaids & Escrows
Costs for Selling a Home
New Construction Closing Costs
New Construction Escrows explained
second lien mortgages explain
?? escrow analysis and rebalance for homeowners
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