Understanding Closing Costs

Closing costs are the fees paid at the end of a real estate transaction. Our calculator provides an estimate of these costs in the "Total Loan Cost" section.

What is Included?

While actual costs vary by lender and location, our tool estimates costs based on several common categories:

• Lender Fees: Charges for processing and underwriting the loan application.
• Third-Party Fees: Costs for services like the home appraisal and credit report.
• Title Fees: Costs for title search and insurance to ensure the property can be legally transferred.
• Prepaid Items: Upfront payments for property taxes and homeowners insurance to establish your escrow account.

Refinance Break-Even Point

In our Refinance Calculator, closing costs are crucial for calculating the "Break-Even Point." This is the time it takes for your monthly savings (from a lower interest rate) to exceed the upfront cost of the refinance.