How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Sellers & buyers often negotiate to decide how to share these costs.

As indicated below, many of the buyer's closing costs cover the costs of originating the loan. At Metro Mortgage, we have extensive experience in residential mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Soon after you apply for a loan, we will provide you with the "Loan Estimate" of your costs. We base this closing cost estimate on our extensive past experience. Please note that while our LEs are very accurate, we cannot always estimate closing costs to the penny. We answer questions about closing costs every day at Metro Mortgage, so please be sure to ask if you have questions.

Below is a general list of closing costs. We will always provide a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Taxes
  • Loan-related costs
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Metro Mortgage can help you understand closing costs. Call us at 866-300-1550.

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