What Are Closing Costs?
Complete 2026 Guide
The fees every buyer and seller pays at the closing table — and exactly how much to expect.
What Are Closing Costs?
Closing costs are the fees and expenses paid on the day a real estate transaction is finalized — when the deed transfers and the buyer officially becomes the owner. They are separate from the down payment and must be paid in cash at closing.
Both buyers and sellers pay closing costs, but for very different items. Buyers typically cover loan-related fees, while sellers mainly pay real estate agent commissions and transfer taxes.
Of the home purchase price
Mostly agent commissions
Seller concessions are common
After mortgage application
Closing Cost Calculator
Enter the home price and your role to get an itemized estimate.
Who Pays What at Closing?
Here’s a complete breakdown of every closing cost item and who’s responsible — buyer, seller, or both:
| Cost Item | Typical Amount | Who Pays |
|---|---|---|
| Real estate agent commissions | 5%–6% of sale price | Seller |
| Loan origination fee | 0.5%–1% of loan amount | Buyer |
| Home appraisal | $350–$600 | Buyer |
| Home inspection | $300–$500 | Buyer |
| Lender’s title insurance | $500–$1,500 | Buyer |
| Owner’s title insurance | $500–$1,500 | Negotiable |
| Transfer taxes / deed stamps | Varies by state | Both |
| Escrow / settlement fee | $500–$2,000 | Both |
| Attorney fees | $500–$1,500 | Both |
| Recording fees | $50–$250 | Buyer |
| Prepaid homeowner’s insurance | $1,000–$2,000 | Buyer |
| Prepaid property taxes | 2–3 months | Buyer |
| Mortgage points (optional) | 1% per point | Buyer |
| Outstanding mortgage payoff | Remaining balance | Seller |
| HOA transfer fee (if applicable) | $100–$400 | Seller |
What Lenders Require at Closing
Different mortgage lenders have slightly different requirements and fee structures. Here’s how some of the major US lenders compare on key closing cost items:
| Lender | Origination Fee | Online Loan Estimate | Seller Concessions Allowed |
|---|---|---|---|
| Rocket Mortgage | ~1% of loan | Yes | Up to 9% (conv.) |
| Chase | $1,440–$3,000 flat | Yes | Up to 9% (conv.) |
| Wells Fargo | 0.5%–1% | Yes | Up to 9% (conv.) |
| Better.com | No origination fee | Yes | Up to 6% (FHA) |
| LendingTree | Varies by lender | Yes | Varies |
| Bank of America | $1,500–$3,000 | Yes | Up to 9% (conv.) |
One important note: Better.com charges no origination fee, which can save $2,000–$5,000 at closing compared to traditional lenders. However, their rates may be slightly higher to compensate. Always compare the Annual Percentage Rate (APR), not just the interest rate, when evaluating lenders.
Buying a Home? See the Full Breakdown
A complete itemized guide to every fee buyers pay at closing — and which ones you can negotiate down.
Full Buyer’s Guide to Closing Costs →Selling? Your Closing Costs Are Much Higher
Sellers pay 6–10% of the sale price — mostly in agent commissions. See exactly where your money goes.
See What Sellers Pay at Closing →