Closing Costs, Explained Line by Line

Title insurance, escrow, prepaid interest — what every line on your closing statement means.

1 min read

Signing closing documents

Closing statements look intimidating, but every line has a simple purpose.

Lender fees

Origination, underwriting and appraisal. These are negotiable — compare loan estimates line by line.

Title & escrow

Title insurance protects against ownership disputes; escrow fees pay the neutral party holding funds and documents.

Prepaids

Property taxes, homeowners insurance and interest paid in advance. Not a fee — you would pay these anyway.

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Written by

Samuel Adeyemi

Mortgage & Finance Partner at Norvale.

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