What are Closing Costs? - Definition

What are Closing Costs? - Definition
Closing Costs are the costs associated with doing the loan that are collected at the time of closing. It is important to know that there is no such thing as a no closing cost loan.

Closing Costs can either be paid through proceeds (or cash taken out) of a loan, or by Yield Spread Premiums (Points paid by the lender for charging a higher rate than the market dictates). Closing costs include lender and title fee's.