How do Closing Costs Work?

"Closing Costs" are the fees that pay for the various services involved when you sell or buy residential real estate. Sellers & buyers often negotiate these closing costs.

As the list below indicates, many of the costs result from getting your mortgage loan. At Power Purchase Mortgage, we are highly experienced in mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you apply for a loan, we'll give you a "Loan Estimate" of your closing costs. We base this closing cost estimate on our many years of past experience. Please note that while our LEs are very precise, we can't always predict your closing costs to the penny. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that can change slightly at closing.

Below you'll find a generic list of closing costs. We will provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Up-front Interest Payment
  • Escrow Fees
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Pulling YourCredit Report
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)

Power Purchase Mortgage can answer questions about these closing costs. Call us: (877) 226-8191.

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