Closing costs, also known as settlement costs, are the fees you pay when obtaining your loan.
Closing costs are typically about 3-5% of your loan amount and are usually paid at closing.
To calculate closing costs, you can estimate 2% to 5% of the total amount you plan to finance.
For example, with a loan of $200,000.00, you could estimate closing costs between $4,000.00 and $10,000.00
To get a more accurate estimate, request a Loan Estimate document from your potential lender.
Closing costs are split up between buyer and seller.
While the buyer typically pays for more of the closing costs, the seller will usually have to cover their end of local taxes and municipal fees.