Which term describes the fees paid at the closing of a real estate transaction?

• A. Closing Costs
• B. Co-signers
• C. Collateral
• D. Delayed Gratification

Answer: (A)

Fees paid at the closing of a real estate transaction are called closing costs. These cover a range of charges involved in finalizing the loan and the transfer of ownership, including lender origination fees, title search and title insurance, appraisal, recording fees, attorney or escrow fees, and prepaid items like property taxes and homeowners insurance, plus any points paid to secure a lower interest rate. These costs are due at closing and are separate from the purchase price and the loan amount. Co-signers are people who agree to guarantee the loan, collateral is the asset pledged to secure the loan, and delayed gratification is a behavioral concept; none of these describe the fees paid at closing.