Closing costs are fees and expenses that are paid when a real estate transaction is finalized, such as when buying or selling a home. The calculation of closing costs varies depending on the location, the type of property being bought or sold, the price of the home, and the type of mortgage you are using.

Some common expenses that may be included in closing costs are:

1. Mortgage-related fees: Depending on the type of mortgage, there may be fees associated with the loan, such as origination fees or discount points.
2. Appraisal fee: This is the fee paid to a professional appraiser to determine the value of the property.
3. Title search and insurance: These fees cover the cost of searching public records to ensure that the property title is clear and provide insurance to protect against any issues that may arise, such as legal claims against the property.
4. Home inspection fee: This is the fee paid to a home inspector to assess the condition of the property and identify any issues.
5. Attorney/Settlement agent fees: If an attorney is involved in the transaction, their fees may be included in the closing costs.
6. Property taxes and prepaid insurance: You may be required to pay a portion of the property taxes and insurance premiums at closing.
7. Recording fees: These fees cover the cost of recording the transaction (new deed and mortgage) with the appropriate government agency.
8. Escrow fees: These fees cover the cost of holding the funds for the transaction in an escrow account until the closing is completed.

*There may also be additional fees due upon closing on the loan.