Closing Costs Explained: What You'll Actually Pay

Beyond your down payment, closing costs are the fees to finalize your loan — usually 2–5% of the loan amount. Knowing what they are helps you compare offers and negotiate.

The main fees

• Origination / lender fees — what the lender charges to make the loan
• Appraisal — a professional estimate of the home's value
• Title insurance & search — protects against ownership disputes
• Escrow / prepaids — upfront property taxes and homeowners insurance
• Recording & transfer taxes — government fees to record the sale

What's negotiable

Lender and origination fees vary a lot between lenders — that's where comparing offers pays off. You can also ask the seller for a credit toward closing costs, or take a slightly higher rate in exchange for lender credits that reduce cash due at closing.

See your real number

Your Loan Estimate (provided within 3 business days of applying) lists every fee. Compare Loan Estimates from a few brokers side by side — same loan, different totals. Use the payment calculator to see how it all fits your budget.