Mortgage Closing Cost Breakdown

Introduction

A mortgage closing cost breakdown organizes fees into categories: origination charges, services you cannot shop for, services you can shop for, and prepaid items. See What Are Closing Costs and Loan Estimate Explained.

Key Categories

• Origination charges — Lender fees (processing, underwriting, points)
• Services you cannot shop for — Appraisal, credit report, flood cert, tax service
• Services you can shop for — Title, escrow, survey (where applicable)
• Prepaid items — Insurance, taxes, prepaid interest
• Initial escrow — Reserves for taxes and insurance

See Average Mortgage Closing Costs and Who Pays Closing Costs.

Frequently Asked Questions

What are the main categories of closing costs?

Closing costs typically include: (1) Origination charges (lender fees), (2) Services you cannot shop for (appraisal, credit report, flood cert), (3) Services you can shop for (title, escrow), (4) Prepaid items (insurance, taxes, interest), (5) Initial escrow payment.

Where do I see the breakdown?

The Loan Estimate and Closing Disclosure break down costs by category. Section A is origination charges; Sections B–E cover other services and prepaid items.

Which costs can I shop for?

Title insurance, escrow, and some other services are often shoppable. The Loan Estimate indicates which services you can shop for. Compare quotes to save.

What are prepaid items?

Prepaid items include homeowner's insurance, property taxes, and prepaid interest (from closing to first payment). These are not fees but funds held in escrow or paid in advance.