Which of the following is typically included in closing costs?

Closing costs typically encompass a variety of fees and expenses that are incurred when completing a real estate transaction. Insurance premiums, particularly for homeowners insurance, are commonly included in these costs. This is because lenders often require borrowers to obtain insurance coverage as a condition of the mortgage, and the cost of the initial premium may be collected at closing.

In contrast, the down payment is not considered a closing cost; it is the upfront amount paid by the buyer toward the purchase price of the home. Cash reserves refer to the funds that borrowers may need to hold in their bank accounts after closing, often required by lenders to ensure that borrowers can cover future mortgage payments. Savings account balances, while related to the financial status of the borrower, are not included in closing costs. Thus, among the options given, insurance premiums are the only component typically classified as part of closing costs.