As homebuyers quickly discover, there are countless things to understand during the mortgage process. You may need to sell your home, negotiate a deal, or shop for a loan with an attractive interest rate. An often overlooked part of buying real estate and getting a mortgage is the added expense cost of closing fees. 

We’ve compiled answers to some frequently asked questions about mortgage loan closing costs. however, you’ll likely want to consult an expert. The knowledgeable mortgage bankers at Ameris Bank are ready to help!
 

What are closing costs?

Put simply, closing costs are expenses over and above the interest rate on the mortgage loan. Closing costs are collected by the lender and cover services performed by the lender or third parties, like a home appraiser.
 

How many types of closing costs are there? 

Closing costs not only vary state by state, but institution by institution as well. Some websites list as many as 27 possible charges, but very few consumers pay all of these. At Ameris Bank, we strive to limit closing costs and keep loans as affordable as possible. 
 

How much can closing costs on a home purchase add to a real estate transaction?

The national average of closing costs is between 2% and 5% of the mortgage. The following are the average closing costs (with taxes) in Ameris Bank’s geographic region in 20242: 
 

• Alabama: $2,986
• Florida: $8,554
• Georgia: $3,762
• Maryland: $14,721
• N. Carolina: $3,406
• S. Carolina: $3,447
• Tennessee: $3,911
• Virginia: $6,346

 

What is included in closing costs?

To cover their expenses in processing loan applications, mortgage lenders often charge an application fee and loan origination fee. Some origination fees are a flat rate, and some are a percentage of loan value. On a $200,000 mortgage, the two fees usually total between $1,000 and $1,500.
 

Are “points” on a loan part of the closing costs? 

Formally called “discount points,” they are technically prepaid interest on a loan and can be part of closing costs. Each point equals 1% of the loan value. But it’s more useful to think of points as a way of “buying” a lower interest rate. 

For example: You are looking at a 30-year fixed mortgage at 4.00% APR. If you are willing to pay an additional point – that is, $2,000 on a $200,000 loan – the rate drops to 3.75% APR. Those willing to pay 2 points ($4,000 in this example) get a rate of 3.5%. 
 

Do all closing costs apply to services offered by the lender?

Closing costs often include fees beyond your lender. For example, an appraiser chosen by the lender will visit the property you want to buy and estimate its value. The reason? If you face financial trouble, the lender needs to ensure the property can be sold for enough to repay the loan. Another common closing cost is a title search fee, which pays for research to ensure no one else has a legal claim to the property.  
 

Can I get a breakdown of closing costs before I commit to a loan?

You can get a rough estimate of closing costs by using one of the many closing costs calculators online. An even better idea is to contact an Ameris Bank mortgage banker. Like all reputable lenders, we provide a “Good Faith Estimate” outlining your closing costs, so you know exactly what you owe.
 

I want to apply for a Federal Housing Administration (FHA) mortgage. Is there anything I should know about FHA closing costs? 

The federal government defines which closing costs can be charged to the borrower and sets limits on those fees. Chat with an Ameris Bank mortgage banker to learn more about what you can expect with FHA loan closing costs.
 

How do I pay the closing costs?

Closing costs are typically paid from your savings account on closing day, though you can ask your lender if they can be rolled into your loan. The latter approach will make your monthly mortgage payments higher but can ease the initial cost of buying a home. 
 

Where can I find more information about closing costs?

Our mortgage bankers at Ameris Bank are a great source of information about closing costs in our geographic footprint. There are also several websites that offer state-by-state breakdowns of typical closing costs, such as this easy-to-read chart from Bankrate.com. 

There are several things to consider during the mortgage process, and we’ve only covered a few. Still want to know more? Speak with an expert on the topic and contact one of the knowledgeable mortgage bankers at Ameris Bank today.

Sources: 

1. https://yourhome.fanniemae.com/calculators-tools/closing-costs-calculator 
2. https://www.bankrate.com/real-estate/average-closing-costs-by-state/?tpt=b

Reviewed April 2025
All loans subject to credit approval.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank is not affiliated with nor endorses any of the companies featured in this article.