Closing costs encompass the various fees and expenses associated with completing a real estate transaction. Buyers aren’t the ...

Even though taxes and insurance aren't owed to your lender, they still have a vested interest in making sure you pay these costs. So, they'll often pay it for you through an escrow account.

Other necessary costs like homeowners insurance, HOA fees, and property taxes — often called escrow costs — are typically added to your payment too, though these vary widely by location.