Whether you are buying a home or are refinancing, there are fees required to finalize the loan. We lump all these together and call them closing costs. With refinance loans, the closing costs are a bit less because certain elements are missing (such as title fees, home appraisal fees, and other sale-related fees).
This article will focus on the closing costs that you can expect to pay when you buy a property.
How much can you expect to pay in closing costs?
Closing costs are about 2% to 5% of your loan amount. So if your loan is for $250k, you can expect to pay about $5,000 and $12,500 in closing costs. Admittedly, this is a fairly large range but we’ll break down the costs so you can have a better understanding of why it varies so much.…