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Buying

Closing Costs

Definition

The fees and prepaid items paid at settlement, separate from the down payment, typically 2% to 5% of price for buyers.

Example

Lender fees, title charges, recording, and prepaid escrow together totaled $11,400 at closing.

Frequently asked questions

What does Closing Costs mean in real estate?

The fees and prepaid items paid at settlement, separate from the down payment, typically 2% to 5% of price for buyers.

How is Closing Costs used in practice?

Lender fees, title charges, recording, and prepaid escrow together totaled $11,400 at closing.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.