Also referred to as settlement costs, closing costs are expenses that the buyer pays over and above the price of the property. It shouldn’t come as much of a surprise that they’re paid when you close the home.
Defining exactly how they are calculated can be tricky because they are not one specific line item, but instead a collection of variable expenses identified for different reasons. The following variables will help you understand how much closing costs will be on a house:
- The state or county in which you are buying a house
- The lender you choose and their requirements
- The type of mortgage you are getting
- The real estate agents you are using to purchase your house