Mortgage costs are the fees and prepaid items you pay to get a mortgage or refinance, and you can generally expect total closing costs to range from about 2 percent to 5 percent of the loan amount depending on the loan type and local fees. We break down the common fees you will see, how those fees differ for Conventional, FHA and VA loans, and the exact documents that will show the numbers you pay.

What mortgage costs include

Mortgage costs bundle several categories of charges. The main groups are lender charges, third party charges, prepaid items, and escrow or reserve requirements. Together these cover everything from the underwriting work your lender does to local recording fees and title insurance.

  • Lender charges. Origination fees, processing and underwriting fees, discount points, and any lender credits. These are billed by the lender you choose.
  • Third party charges. Appraisal, credit report, title search and title insurance, settlement or closing agent fees, and inspections paid to outside providers.
  • Prepaids and escrow. Homeowner insurance premium, property tax prorations, interest that accrues between closing and the first payment, and escrow reserves the lender may collect at closing.
  • Government and county fees. Recording fees, transfer taxes where applicable, and other county or state filing charges.

For a quick definition of a mortgage broker and how a broker works with multiple lenders, see the Wikipedia explanation on mortgage brokers.

How much should you expect to pay

The Consumer Financial Protection Bureau reports that most buyers and refinancers pay roughly 2 percent to 5 percent of the loan amount in closing costs. That range covers typical purchase and refinance transactions, but your costs can be lower or higher based on the loan program, loan size, and local recording fees.

Factors that change your closing costs include:

  • Loan program and underwriting requirements, for example Conventional, FHA or VA.
  • Whether you buy points to lower your interest rate.
  • Your credit profile and the loan to value ratio.
  • Local county recording or transfer fees, which vary around Atlanta and in Cobb County where Mableton is located.

Because programs vary, we explain cost differences for common loan types below and link to the related service pages for Conventional Loans, FHA Loans and VA Home Loans so you can compare program details.

How costs vary by loan type

Conventional loans

Conventional loans typically include an appraisal, title work, and lender fees. Private mortgage insurance may be required if your down payment is under 20 percent, and PMI carries both upfront and ongoing cost implications. See our Conventional Loans page to understand eligibility and typical cost drivers for conventional financing.

FHA loans

FHA loans usually allow lower credit and down payment thresholds but include mortgage insurance premiums. FHA mortgage insurance has upfront and monthly components that affect cash to close and ongoing payment.

VA loans

VA loans for eligible veterans and service members do not require private mortgage insurance, but the VA charges a funding fee in many cases. That funding fee can sometimes be financed into the loan amount. For how the fee works, see our VA Funding Fee topic and our VA Home Loans service page.

Refinances and cash out

Refinances often have lower third party fees, but you can still expect appraisal, title and recording fees. For many refinances we also consider whether closing costs should be paid upfront, built into the new loan, or offset by a slightly higher interest rate. Read more on our Refinance service page and our refinance topic pages for how to evaluate the tradeoffs.

Common fees you will see at a glance

Below are the most common line items that appear on a Loan Estimate and a Closing Disclosure. You will not always pay every item listed here, but these are the items lenders and settlement agents routinely include.

  • Origination fee. The fee the lender charges to create and deliver the loan.
  • Discount points. Optional upfront fees you can pay to reduce your interest rate.
  • Appraisal fee. The cost of the professional valuation a lender requires.
  • Title search and title insurance. Protects both you and the lender against title defects and liens.
  • Settlement or closing fee. Fee paid to the closing agent or attorney who conducts the settlement.
  • Recording fees. Charged by the county to record the mortgage and deed.
  • Prepaid interest and escrow reserves. Interest from closing to the first payment and initial deposits for taxes and insurance.
  • Credit report and flood certification. Small fees for required third party reports.

How we estimate and verify your closing costs

  1. Initial estimate. We gather basic details about the purchase price, down payment or cash out amount, and the loan program you prefer to produce a preliminary cost range.
  2. Loan Estimate. Within three business days of your application the lender provides a Loan Estimate that lists expected fees. This standardized form shows lender charges, third party fees, prepaid items, and estimated cash to close. The Consumer Financial Protection Bureau explains how the Loan Estimate works.
  3. Compare offers. We compare Loan Estimates across lenders for the same loan product so you can see differences in fees and credits and in the interest rate tradeoffs.
  4. Final review and Closing Disclosure. Before closing you get a Closing Disclosure that shows the final, binding numbers. Review it carefully and ask about any unexpected changes.

Pro tip: The lowest advertised rate is not always the lowest cost. Ask to see the Loan Estimate. A slightly higher rate with lower upfront fees can be cheaper if you keep the loan long term.

Practical checklist before closing

Documents and tasks to have ready

  • Photo identification for everyone on the loan.
  • Proof of any funds you will bring to closing, such as bank statements or certified funds as required.
  • Homeowners insurance binder or policy declaration page showing coverage and effective date.
  • Resolved title issues and any required HOA documents for condominiums.

Watch out: Do not assume the Loan Estimate final numbers will match the Closing Disclosure exactly. Changes in loan terms or last minute seller concessions can move fees. Plan for a small range of variability and review the Closing Disclosure closely to confirm the final cash to close.

How to lower your closing costs without sacrificing what matters

There are legitimate ways to reduce what you pay at closing, and there are tradeoffs to understand. Typical strategies include asking the seller to contribute to closing costs on a purchase, choosing lender credits that raise the interest rate in exchange for reduced upfront fees, and shopping for third party services like title and inspection when allowed by state law.

When you compare offers, look beyond the headline rate and compare the total costs over the time you expect to hold the loan. We will walk through those scenarios and show you how lender credits, points and fees interact so you can choose the option that fits your timeline.

Local considerations for Mableton and Cobb County

Mableton sits inside the Atlanta metro area and most mortgage closings there go through county recording procedures in Cobb County. Recording fees and county charges vary by county and by the type of documents recorded. Because local fees change, we always verify the county recording charges and estimate any county taxes or local requirements when preparing your Loan Estimate. For location specific questions you can review local county resources or ask us to include county fee estimates as part of your Loan Estimate review.

For a general definition of the professional role that helps you compare lenders and fees, see the Wikipedia entry on mortgage brokers. As a licensed mortgage broker we work with lenders including our partner UMortgage to gather multiple Loan Estimates and present clear comparisons.

Who pays what in a typical Atlanta area transaction

Responsibility for specific closing costs is negotiated between buyer and seller in a purchase transaction. Common patterns include the buyer paying lender fees and third party charges, while sellers may agree to contribute toward buyer closing costs through seller concessions. For refinances the borrower normally pays closing costs, though some lenders offer options to finance or roll costs into the loan balance.

For deeper reading on the topics mentioned above see our topic page on Mortgage Costs Breakdown, our Mortgage Broker service page to understand how we work with multiple lenders, and our home page for service area details in Atlanta.

Other helpful pages on our site include our pages about Conventional Loans, FHA Loans, VA Home Loans and Refinance which describe program specific cost drivers and eligibility.

Key takeaway

Closing costs include lender fees, third party charges, prepaid items and local recording fees, and most borrowers in the U.S. pay between about 2 percent and 5 percent of the loan amount. Use the Loan Estimate to compare offers, and check the Closing Disclosure before you sign to confirm the final numbers.

Frequently asked questions

What are closing costs and what does the Loan Estimate show?

Closing costs are the fees and prepaid items required to obtain a mortgage or refinance. The Loan Estimate is a standardized three page form lenders must provide early in the process that lists expected lender charges, third party fees, prepaid items and the estimated cash to close.

How much will I pay in Mableton, Georgia?

Most borrowers pay about 2 percent to 5 percent of the loan amount in total closing costs, but the exact number depends on the loan program, lender fees, points, and county recording charges. We include county recording estimates when we prepare your Loan Estimate so you see a realistic cash to close range.

Can seller pay closing costs in a purchase?

Yes. Seller contributions toward buyer closing costs are common and negotiable. When sellers contribute, the amount is usually reflected on the sales contract and the settlement statement so both parties see how the credit affects cash to close and net proceeds.

Are appraisal and inspection the same thing?

No. An appraisal is ordered by the lender to assess the property value for underwriting. A home inspection is ordered by the buyer to evaluate the condition of the property and is not a lender requirement, though it can affect the transaction and negotiation.

Can I roll closing costs into my loan?

Some loan programs and lenders allow you to finance certain closing costs by increasing the loan amount. That option raises your loan balance and interest paid over time, so it is a tradeoff. We model the math for your situation so you can see the long term impact.

When will I get the final Closing Disclosure?

You must receive the Closing Disclosure at least three business days before closing. That form provides the final, binding charges and the exact cash to close so you can prepare to sign.

Where to check reviews and learn more

Read our Google Business Profile to see client reviews and get directions, and review our related pages about mortgage costs and loan programs for more detail.

Learn more about mortgage costs and how we compare Loan Estimates