Closing Costs: Mortgage Meaning Guide Skip to main content

Mortgage Definition

Closing Costs

Fees and expenses paid when finalizing a real estate transaction, typically 2-5% of the purchase price. Includes appraisal fees, title insurance, attorney fees, and lender fees.

Data updated Jan 2026
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Why it matters

This term directly affects your cash-to-close plan. Buyers often focus on rate first, but upfront funds and reserve cushions usually determine whether a purchase is actually feasible.

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