What are closing costs?
Closing costs are expenses that are incurred by the buyer and the seller when a real estate transaction is completed. These costs can include a variety of fees, such as:
- Mortgage origination fee: covers the cost of processing the mortgage loan.
- Lender's title insurance: protects the lender from any issues with the property's title, such as outstanding liens or disputes over ownership.
- Owner's title insurance: protects the buyer from any issues with the property's title, such as outstanding liens or disputes over ownership.
- Escrow or title company fees: covers the cost of preparing and recording the necessary documents.
- Settlement agent fee: covers the cost of closing your loan and performing settlement services.
- Appraisal fee: covers the cost of determining the value of the property.
- Credit report fee: covers the cost of obtaining a credit report from credit reporting agencies.
- Flood certification fee: covers the cost of obtaining an independent flood certification report.
- and other miscellaneous fees. Our easy-to-use mortgage calculator shows typical closing costs with descriptions, industry averages vs. CapCenter fees (if any).
Closing costs can vary depending on the location, the price of the property and the type of loan the buyer is using. Typically, closing costs can range from 2-5% of the purchase price of the property. At CapCenter, we pride on offering Zero Closing Costs for many popular home loan products with competitive rates and terms. Certain line items may only be waived when CapCenter Realty is used in conjunction with CapCenter Mortgage to purchase your home.
The costs below appear on closing, but these costs are not usually waived as they are not necessarily associated with processing the application.
- Down payment: the initial, upfront amount you pay at closing towards the cost of the home.
- Property taxes: fees that cover the property taxes that are due before the transfer of ownership (if taxes are required to be prepaid).
- Prepaid taxes and insurance are not covered
- For purchases, recordation taxes and government recording fees may or may not be covered depending on your property location and use of CapCenter's realty services. Please use our free, anonymous mortgage calculator to see which fees are waived for your situation.
- Discount points: a one-time fee paid to the lender to lower the interest rate on the mortgage loan (if discount points are requested).
Read our disclosures to see how CapCenter's Zero Closing Cost offer works for you in your state.
In some cases, the seller may agree to pay a portion of the closing costs via "seller credits" or "seller concessions" as a way to make the sale more attractive to the buyer.
Every situation may differ slightly based on loan product and borrower(s), so please apply for a mortgage to get a personalized loan estimate.