Because practices vary from area to area, it is difficult to provide estimates for settlement costs that fit everywhere. However, one rule of thumb for buyers is to figure that settlement costs will be about 3 percent of the price of your home. In some relatively high-tax areas of the country, 5 percent to 6 percent is more common.

Some settlement costs, such as homeowner's insurance, private mortgage insurance, or points, can be more expensive if your credit rating is low. Knowing your credit score can help you understand how lenders will evaluate your applications.

The experts at the Federal Reserve also offer these tips:

- Think about settlement fees before you submit your purchase offer.

- Remember many fees and charges are negotiable.

- Compare costs by shopping among several mortgage settlement providers.

- Talk with attorneys, mortgage lenders, real estate agents and other advisers for information about lending practices, mortgage instruments and your own interests before you commit to a specific loan.

For more information and a copy of a settlement cost work sheet, visit www.federalreserve.gov .

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