Which term refers to fees and charges associated with the purchase of a property?

• A. Grants
• B. Closing Costs
• C. Interest
• D. Credit Score

Answer: (B)

Closing costs are the fees and charges that accompany finalizing a home purchase. They include items like the lender’s origination fee, appraisal, title search and title insurance, recording fees, attorney fees, and prepaid items such as homeowners insurance and property taxes. Sometimes buyers also pay points to lower the interest rate. This term specifically describes costs tied to closing the transaction, not the ongoing cost of borrowing or other related concepts. Grants are funds that may assist with the purchase and don’t need repayment; interest is the cost of borrowing money; a credit score is a measure of creditworthiness used to determine loan terms.