What do settlement or closing costs include?

Your settlement or closing costs depend on your area and the outcome of your negotiation with your buyer. Typically, these costs may include:

- Loan discount "points" based on the amount of the buyer's mortgage loan.
- Interest on your mortgage loan for the portion of the month up to the settlement or closing date.
- Termite inspection fee.
- Fees, such as preparation of release, recordation of release, notary, trustee fees, if needed, and grantor's tax, as local laws and customs dictate.
- Brokerage fee.
- "If applicable" fees:
a) A prepayment penalty on your mortgage.
b) Repairs required by the lender if not paid by buyer.
c) Settlement or closing fees for attorney services such as paying off the loan and document preparation.