# Closing costs

> Closing costs are the lender fees, third-party charges, government taxes and prepaid items you pay to complete a mortgage, on top of the down payment.

URL: https://mortgage-math-us.com/glossary/closing-costs/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Closing costs** are all the charges you pay at closing to get a mortgage and transfer the home: lender fees, third-party services such as the appraisal and title insurance, government recording fees and taxes, and prepaid interest, insurance and escrow deposits. The CFPB puts them at about 2% to 5% of the purchase price, on top of the down payment.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Typical closing costs, low end (CFPB) | 2% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |
| Typical closing costs, high end (CFPB) | 5% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |
| Closing Disclosure arrives before closing | 3 business days | [CFPB](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/) | Oct 28, 2026 |

## Where they’re listed

Every lender itemizes closing costs on page 2 of the Loan Estimate in the same lettered sections: A for the lender’s origination charges, B and C for services you can’t or can shop for, E for taxes and government fees, F for prepaids and G for the initial escrow deposit. The Closing Disclosure, which you receive at least 3 business days before closing, repeats the layout with final figures, so you can compare line by line.

## What the range means in dollars

On a $360,000 home, about the US median home value, the CFPB range works out to $7,200–$18,000. Where you land depends mostly on your state’s [transfer tax](https://mortgage-math-us.com/glossary/transfer-tax/) and any mortgage tax, the loan amount (which drives points and title premiums), and how many days of prepaid interest fall before your first payment. The [closing cost calculator](https://mortgage-math-us.com/tools/closing-cost-calculator/) builds the estimate for your state.

## Related terms

- [Cash to close](https://mortgage-math-us.com/glossary/cash-to-close/), the amount you actually bring
- [Prepaid items](https://mortgage-math-us.com/glossary/prepaid-items/), paid ahead at closing
- [Lender credit](https://mortgage-math-us.com/glossary/lender-credit/) and [seller concessions](https://mortgage-math-us.com/glossary/seller-concessions/), two ways to cover them

## Sources

- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/) — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- [CFPB: Loan Estimate explainer](https://www.consumerfinance.gov/owning-a-home/loan-estimate/)

_General information, not financial advice._