How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of residential real estate. Sellers & buyers negotiate to decide how to split these costs.

Many of the costs associated with buying a home are associated with getting the mortgage loan. At Abbey Mortgage, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you apply for a loan, we will give you a "Loan Estimate" of your closing costs. The cost estimate is based on our past experience. It's important to note that while our LEs are very accurate, we can't always estimate your costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that can vary a little bit at closing.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you have completed your application. At Abbey Mortgage, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At Abbey Mortgage, we answer questions about closing costs every day. Call us at 352-369-4200.

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