Quick answer: Upfront purchase costs beyond the down payment.
Definition
Upfront purchase costs beyond the down payment.
Why it matters
Closing Costs matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does Closing Costs mean?
Upfront purchase costs beyond the down payment.
Why does it matter for affordability?
Closing Costs can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.