Closing Costs
Definition
Closing costs are the fees required to finalize a mortgage or home equity product. They cover services such as appraisal, title work, recording and the lender's own charges.
They are commonly quoted as a percentage of the loan amount, and the total varies by lender, product and state.
Some can be rolled into the loan rather than paid up front, which preserves cash at the cost of borrowing more and paying interest on it.
Because they are a fixed cost against whatever is borrowed, they weigh more heavily on smaller loans, and on any plan to refinance again soon.