What are closing costs?

Closing costs are fees paid at the closing of a real estate transaction when you’re buying or refinancing a home. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are the expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction.

Typically, the buyer’s costs include underwriting, appraisal fees, mortgage insurance, homeowner’s insurance, and property taxes.