Closing costs are fees associated with the cost of obtaining a home loan. These fees include items such as the appraisal, lender origination fees, escrow charges, lender’s title insurance and prepaid taxes and insurance premiums.
The down payment for a home is applied directly toward lowering your total loan amount. Normally based on a percentage of the total sales price, the amount is established by the first mortgage loan product that the lender has chosen for your loan.