Legal sources

Buying a home in the United States costs more than the price and the down payment. At closing, the buyer pays lender fees, prepaid interest, a first deposit into the escrow account, title insurance and recording fees; the seller usually pays the transfer tax and the agents. Each month the buyer pays PITI: principal, interest, property tax and homeowners insurance, plus private mortgage insurance (PMI) when the down payment is small. Federal law sets when PMI ends, how escrow accounts work and how the annual percentage rate (APR) is calculated; property tax and transfer tax follow state and local law. Each default below cites its law or regulation, the section and the date last verified, or is marked as a market convention. California is the only state covered so far; for another state, you enter the state and local amounts. Titles and section numbers are as published, so you can look up the official text.