What are Closing Costs?
"Closing Costs" are the fees that pay for various services involved in the sale of a house. Buyers and sellers negotiate the payment of these costs.
As you'll see below, many of the closing costs result from getting your mortgage. At Commonwealth Mortgage & Investments, Inc., we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Very shortly after you submit your application, we will provide you with the "Good Faith Estimate" of your costs. The closing costs specified in the Good Faith Estimate are estimated based on Commonwealth Mortgage & Investments, Inc.'s experience with mortgage loans, but costs usually vary by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We will be glad to review the "Good Faith Estimate," answering questions and highlighting costs that sometimes change slightly at the closing table.
Below you'll find a fairly general list of closing costs. We will provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing CostsLoan-Related Costs
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan-related costs
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Obtaining YourCredit Report
- Transfer Taxes and Recording Fees
- Flood or Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance