Closing costs can be divided into two main categories: the lender and third-parties out of the lender's control. Lender fees include any costs associated with processing your loan, such as prepaid interest,, discount points, origination charge, and any rate lock fees. Third-party fees include fees paid for services performed by parties other than the lender – either imposed by the state or local government, or by the individual vendors that provide the service. They also include pre-payments for taxes and insurance that are placed in an impound or escrow account. Third-party fees include appraisal fees, title service fees, and government recording fees.