Closing Costs
Real estateGlossary term
Definition
Fees and expenses paid at the closing of a real estate transaction, typically 2-5% of the purchase price. Includes appraisal, title insurance, attorney fees, and loan origination.
Related terms
- MortgageA loan used to purchase real estate where the property serves as collateral. The borrower makes regular payments over a set term (typically 15-30 years) until the loan is paid off.
- Down PaymentAn upfront payment made when purchasing a large item, typically expressed as a percentage of the total cost. Common for home purchases (usually 3-20%) and auto loans.
- EscrowA financial arrangement where a third party holds and regulates payment of funds required for two parties in a transaction. Commonly used in real estate transactions and mortgage payments.
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