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Closing Costs Explained

Closing costs vary by loan program, loan type, and transaction. Origination fees alone can range from 1%–5% depending on the program. My Mortgage Company is competitive — but actual costs differ. Here is what to expect, and how to get your real numbers.

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Total Costs Vary by Program and Loan Type

As one example: on a $400,000 purchase loan, total closing costs might range from $8,000–$20,000 — but this is illustrative only. Your actual costs depend on your loan program, down payment, property, and lender. My Mortgage Company is competitive on origination fees, but fees vary. Your Loan Estimate (required by law within 3 business days of application) will show your exact figures.

All fee ranges in the tables below are representative examples for reference only. Actual fees vary by loan program, loan type, property, and lender. These figures are not a quote, offer, or guarantee. Consult your loan officer for an actual closing cost estimate specific to your transaction.

Lender Fees

FeeTypical RangeNotes
Origination fee1%–5% of loan amountVaries by program and loan type. My Mortgage Company is competitive — consult your loan officer for your specific estimate.
Underwriting fee$500–$1,500Paid to the lender for evaluating your loan file.
Discount points0–2% (optional)Paid upfront to buy down your interest rate. Each point = 1% of loan.
Processing fee$300–$700Administrative cost of processing the loan file.

Third-Party Fees

FeeTypical RangeNotes
Appraisal$500–$1,000Required for most purchase loans. Paid upfront before closing.
Title search & insurance$1,000–$2,500Owner's and lender's title policies. Protects against ownership disputes.
Escrow/settlement fee$800–$1,500Fee paid to escrow company for managing the closing transaction.
Attorney feeVariesNot always required in California — escrow companies typically handle closings.
Home inspection$400–$600Not required by lenders but highly recommended. Paid before closing.
Credit report$30–$75Lender pulls your credit report as part of underwriting.
Flood certification$15–$25Determines if property is in a flood zone.

Prepaid Items & Escrow Setup

FeeTypical RangeNotes
Homeowners insurance (1 year)$1,200–$3,000First full year of premium paid at closing. Varies by property and insurer.
Prepaid interestPer-day rate × days remaining in monthCovers interest from closing date to end of that month.
Property tax impound2–6 monthsInitial escrow deposit for property taxes. Amount varies by closing date.
HOA dues (if applicable)ProratedCovers your share of dues through the end of the month.

Government & Program-Specific Fees

FeeTypical RangeNotes
Recording fees$100–$300County recorder's fee to record the deed and deed of trust.
Transfer tax$1.10 per $1,000 of valueCalifornia documentary transfer tax. Paid by seller in most cases.
FHA upfront MIP1.75% of loan (FHA only)Can be financed into the loan balance.
VA funding fee1.25–3.3% (VA only)Can be financed. Waived for disabled veterans.
USDA guarantee fee1% upfront (USDA only)Can be financed into the loan balance.

How to Reduce Your Closing Costs

  • 1Ask the seller to pay closing costs (seller concessions) — up to 3–6% depending on loan type.
  • 2Choose a lender credit: accept a slightly higher rate in exchange for lender-paid closing costs.
  • 3Close at the end of the month to minimize prepaid interest.
  • 4Shop title and escrow — in California, the buyer typically chooses and can compare providers.
  • 5Look into down payment assistance programs that may also cover closing costs.

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My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164 · Broker: Omar L. Ortiz, NMLS #951384, DRE #02056548. All fee ranges shown are representative examples for reference only and are not a quote, commitment, or guarantee of actual costs. Origination fees range from 1%–5% depending on loan program and type. Fees vary by lender, program, property, and borrower profile. Actual closing costs will be itemized on your Loan Estimate and Closing Disclosure as required by RESPA/TRID. My Mortgage Company is competitive on fees — contact your loan officer for an actual estimate. This is not a commitment to lend.