Closing Costs - Costs that the borrower must pay at the time of closing, in addition to the down payment.

There are two categories of closing costs, "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are items like origination fees, discount points, attorney’s fees, credit report, title insurance and survey that are paid just once. "Pre-paids" are costs which recur during your loan, like property taxes, homeowners insurance and mortgage insurance. Your lender will estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which must be issued to you within three days of receiving a home loan application as mandated by the Real Estate Settlement Proceedures Act (RESPA).