How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved when you sell or buy a house. Sellers & buyers usually negotiate to decide how to split these costs.

As the list below indicates, many of the closing costs result from getting your mortgage loan. Since Abundance Home Mortgage is highly experienced with closings and mortgages, we are closing cost experts.

Loan Estimates (LEs)

Soon after you submit your application, we will provide you with the "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs often vary a little bit between delivery of the LE and closing. We field buyers' questions about these costs every day at Abundance Home Mortgage, so please feel free to ask if we can help answer your questions.

Below you'll find a generic list of costs for buying residential real estate. We will provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Costs associated with "originating" your loan
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At Abundance Home Mortgage, we answer questions about closing costs every day. Give us a call: (512) 335-7800.

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