What is this? Closing costs are the fees and charges paid when you close on a mortgage — typically 2-5% of the loan amount. They include lender fees, title insurance, appraisal, escrow, and government recording fees. Most buyers are surprised by the total.
What's negotiable: Lender origination fees, title insurance rates, and some escrow fees can be negotiated. Ask the seller to cover some closing costs as part of your offer — especially in a buyer's market.
Who it's for: Home buyers and refinance borrowers budgeting for closing day.