Closing costs are expenses incurred by the
buyer and seller in a real estate or mortgage transaction over
and above the price of the property. There are two types of
costs.
Non-recurring Costs
These are one-time
transactional costs.
-
Discount and origination
points
-
Lender fees -
underwriting, processing, document preparations, flood
certificate, tax service, wire transfers
-
Title insurance fees
-
Escrow
-
Attorney or closing agent
fees
-
Recording fees
-
Inspection and appraisal
fees
-
Read estate brokerage
commissions
Recurring Costs
These are costs associated
with owning the property and they recur month after month. A
pro-rated amount of these fees may have to be paid at closing.
These costs may include the following items.
-
Hazard insurance
-
Interest
-
Property taxes
-
Mortgage insurance (PMI)
-
Association Fees
