Closing costs are fees paid by homebuyer and the seller at the time of settlement. While every closing proceeding will incur such costs, including loan refinances, the type and amount will vary according to several types of factors. Read on to learn what closing costs might include for a buyer and a seller, and when refinancing an existing mortgage.

How Are Closing Costs Calculated?

Closing costs for home purchases, sales, and refinances are calculated based on the amount of the loan, mortgage insurance, taxes, and additional fees. In general, closing costs for homebuyers tend to range between 3 – 6% of the overall sale price, while seller costs are often between 6 – 10% of the overall sales price and include real estate commission on the sale of the property. Refinancing closing costs commonly fall between 2 – 6% of the total loan amount.

It is important to understand that the total amount of closing costs will be different for each individual case. The settlement fees for a purchase, sale, and refinance generally include the items listed below.

Buyer Closing Costs

   -Mortgage application and origination fees

   -Loan discount points (if applicable)

   -Home appraisal fee

   -Boundary survey fee (if applicable)

   -Homeowner’s insurance

   -Property taxes

   -Title search

   -Recording fees

   -Transfer taxes

   -Property taxes

    -Lender’s and owner’s title insurance

    -HOA fees (if applicable)

    -Other administrative or settlement costs

Refinance Closing Costs

-Mortgage application and origination fees

-Loan discount points (if applicable)

-Home appraisal fee

-Home inspection fee

-Mortgage insurance

-Title search

-Recording fees

-Other administrative or settlement costs

Seller Closing Costs

  –Loan payoff amount

  -Property taxes

  -Deed preparation fees

  -Courier fees

  -Title transfer fees

  -Grantor’s tax and HRRT fee (if applicable)

  -Recording fees

  -Seller concessions (if applicable)

  -Home repairs (if required)

  -Real estate commission (for agents)

  -Other administrative and settlement costs

Contact the experienced team at Linear Title & Escrow to learn more about the settlement process or for closing cost estimates.