Closing Costs Explained

What are closing costs? A breakdown of title insurance, appraisal fees, and taxes when buying a house.

Where Does the Money Go?

Closing costs are the fees paid at the end of a real estate transaction. They typically range from 2% to 5% of the loan amount.

Common Fees Breakdown

  • Origination Fee: Charged by the lender for processing the loan (0.5% - 1%).
  • Appraisal Fee: To confirm the home's value ($300 - $600).
  • Title Insurance: Protects against claims on the property title.

Who Pays?

Both buyers and sellers pay closing costs, but they pay for different things. Buyers usually pay for the loan-related fees.

Estimate your specific fees with our Closing Cost Calculator.

Written by CalcKit Research Team • Data Sources: Our Methodology