What exactly goes into closing costs?

Closing Costs Could Increase for Homebuyers #

Closing costs, the fees paid on the day of finalizing a home purchase, have been on the rise. In 2022, homebuyers in the US paid a median cost of $6,000 for closing costs, a nearly 22% increase from the previous year. However, changes may be looming for these costs. A settlement by the National Association of Realtors that is set to take effect in July could potentially raise closing costs for some buyers. Meanwhile, the Biden administration plans to address hidden fees in closing costs, aiming to improve competition, choice, and affordability. Factors that influence closing costs include the state of residence, taxes, mortgage loan type, and the home’s overall cost. These costs may include appraisal fees, title insurance, credit reporting fees, and origination fees. Some states require an attorney to be present at closing. Additionally, some lenders roll closing costs into the total mortgage amount.