Could you please clarify what the difference is between closing cost and escrow cost. I was under the

Teresa
Home Buyer
Bakersfield, CA

assumption that escrow cost was the same as closing cost.

Answers (1)
Chris Mabry...
Agent
Tucson, AZ
FIRST ANSWER

Hi Teresa,
Escrow costs are a part of your closing costs. This is the escrow company's fee for handling the transaction. It is based on the sales price of the home and is usually split between the buyer and the seller. Closing costs are your overall charges to close on the purchase of the house. They include the lender's fees for the loan, title insurance for the lender, escrow fees, prepaid taxes and prepaid homeowner's insurance, and usually some smaller fees for recording documents, notary, etc. I hope this answers your question. Good luck!

Mon Jun 15 2009, 16:59

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