What are closing costs?

Closing costs are one time fees associated with a mortgage. Generally, the amounts vary from 3-7% of the total mortgage amount. Closing costs may include attorney fees, title insurance and related charges, mortgage tax, recording filing fees, tax service fees. Other payments at the closing may include Real Estate tax escrows, homeowner's insurance escrows, origination points, private mortgage insurance fees. You should receive a estimated closing costs document from the bank prior to the actual closing.