# Closing (settlement)

> Closing, or settlement, is the last step in buying or refinancing a home: you sign the loan papers, pay closing costs and take ownership. What to expect.

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

## Quick answer

**Closing**, also called settlement, is the last step in buying and financing a home: you sign the loan documents, pay your [closing costs](https://mortgage-math-us.com/glossary/closing-costs/) and the rest of your down payment, and ownership transfers to you. Once you sign, you are responsible for the mortgage.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Closing Disclosure at least this long before closing | 3 business days | [CFPB](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/) | Oct 28, 2026 |
| Typical closing costs, low end | 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 | 5% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |
| Right to cancel a refinance of your main home | 3 business days | [CFPB](https://www.consumerfinance.gov/ask-cfpb/can-i-change-my-mind-after-i-sign-the-loan-closing-documents-for-my-second-mortgage-or-refinance-what-is-the-right-of-rescission-en-186/) | Aug 8, 2024 |

## Before the closing table

You must receive the [Closing Disclosure](https://mortgage-math-us.com/glossary/closing-disclosure/) at least 3 business days before closing. Compare it line by line with your [Loan Estimate](https://mortgage-math-us.com/glossary/loan-estimate/) and ask about anything that changed. Closing costs typically run 2% to 5% of the price — $7,220 to $18,050 on a $361,000 home. Your [cash to close](https://mortgage-math-us.com/glossary/cash-to-close/) adds the down payment and subtracts deposits and credits. Confirm wiring instructions by phone with your settlement agent, using a number you already know, before sending money.

## At the table

A settlement agent — usually a title or escrow company, or a closing attorney in some states — runs the closing. You’ll sign the [promissory note](https://mortgage-math-us.com/glossary/promissory-note/) (your promise to repay), the mortgage or [deed of trust](https://mortgage-math-us.com/glossary/deed-of-trust/) (which makes the home collateral) and many other forms, and the seller signs the deed. Don’t sign if the terms differ from what you expected or you don’t understand them.

On a refinance of your main home, you generally have 3 business days after closing to cancel, so the money isn’t paid out until that ends. The [closing costs guide](https://mortgage-math-us.com/buying/closing-costs/) breaks down each fee.

## 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](https://www.consumerfinance.gov/ask-cfpb/can-i-change-my-mind-after-i-sign-the-loan-closing-documents-for-my-second-mortgage-or-refinance-what-is-the-right-of-rescission-en-186/) — Right to cancel a refinance or home equity loan on your principal home (Aug 8, 2024)
- [CFPB: What is a mortgage closing? What happens at the closing?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-mortgage-closing-what-happens-at-the-closing-en-176/)
- [CFPB: What can I expect in the mortgage closing process?](https://www.consumerfinance.gov/ask-cfpb/im-about-to-close-on-a-real-estate-purchase-transaction-with-a-mortgage-what-can-expect-in-the-mortgage-closing-process-en-1905/)

_General information, not financial advice._