Prepaid items include interest on the loan from the day of closing to the first of the following month, taxes and insurance collected to set-up an escrow account, and any private mortgage insurance that is financed into the loan amount. Closing costs are anything other than the prepaid items. Closing costs are what it "cost" to obtain the loan.

our closing costs for a refinance and as a buyer will include fees for processing, application, credit reports, tax services, courier costs, and document preparation, as well as prepaid interest for the days between the closing until the month before your first mortgage payment is due. Other costs may include escrow items such as homeowner’s insurance (also known as hazard insurance) and municipal taxes. See similar questions...

Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed. See similar questions...

If advertisements said "Higher Interest Rate? You Pay No Closing Costs," they would be more accurate. One of the choices you have when selecting your mortgage is the option of financing the cost to obtain your loan by paying a higher interest rate for the life of your loan and letting your lender write the check at closing to pay the fees. As an example, if you select a $100,000 mortgage with an interest rate of 8.5%, the costs involved with the closing will be approximately $2,500. See similar questions...

Studies show that the closing costs, which can average 2 to 3 percent of a total home purchase price, are often more costly than many buyers expect. But there are some ways to save: Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller. Get a no-point loan. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. See similar questions...

Closing costs are either paid by the home seller or home buyer. It often depends on local custom and what the buyer or seller negotiates. See similar questions...

There may be closing costs customary or unique to a certain locality, but closing costs are usually made up of the following: See similar questions...