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Mortgage Settlement
Closing Costs and Fees Overview

 

Whether you are purchasing a home or are refinancing, the mortgage settlement process (also called mortgage closing) can be confusing and involve many people, documents, and fees. The more you know about the settlement process, the better your chances are for saving money.

Different regions of the country have different practices regarding who pays for what at closing. Buyers and sellers are free to negotiate certain costs and fees into the sales contract. In fast-moving markets, the buyer may have to agree to pay more costs to close the deal. In slow-moving real estate markets, the seller may agree to pay points or fees for the buyer (although it may increase the property price). Because practices vary significantly from area to area, it is difficult to provide estimates for closing costs that apply everywhere. However, a rule of thumb for buyers is that closing costs will be about 3% of the price of the home, or in some relatively high-tax areas, 5% to 6%.

Some settlement costs can be more expensive if your credit rating is low, such as homeowner's insurance, private mortgage insurance (PMI), or points. Knowing your credit score can help you understand how lenders will evaluate your applications. Since December 2004 your lender is required to give you a copy of your credit score.

You can reduce some settlement costs by shopping around for the services and negotiating with the seller, your lender, and your attorney or settlement agent.

Lender-Related Closing Costs and Fees

Miscellaneous Closing Costs and Fees

Closing Costs and Fees for Transferring Ownership

Closing Costs and Fees to State and Local Governments

"All-in-One" Pricing of Closing Costs and Fees

Estimates of Closing Costs and Fees
Examples of Closing Costs and Fees
Worksheet for Closing Costs and Fees
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The information provided in this website is not legal advice and should not be interpreted as legal advice. This website is intended to provide a basic understanding of this information in summary form. This information may not be comprehensive, is subject to change, and may not apply to all individual circumstances. Any information received here should be confirmed with the appropriate government agencies or with an attorney, particularly as it relates to your individual circumstances. Your use of this website indicates your agreement to be bound by our Terms of Use.