What are Mortgage Closing Costs? - NerdWallet

“Wait what are closing cost?” What’s actually included in mortgage closing costs? 🤔 Here are the big ones: • Lender fees (processing & underwriting) • Appraisal • Credit report • Title search & title insurance • Escrow/settlement fee • Recording fees • Prepaid items (taxes, insurance, daily interest) • HOA fees if the home has an HOA • Optional points to buy down the rate Closing costs usually run 2–5% of the purchase price, and every dollar is itemized so you know exactly what you’re paying fo