A more thorough explanation:

HUD-1 is a form that closing agents use to show borrowers all the costs associated with closing a real estate purchase. This includes fees from the loan, as well as other costs like real estate agent commissions, homeowners' insurance, and transfer taxes.

For example, if you're buying a house, the closing agent will give you a HUD-1 form that shows all the costs you'll need to pay at closing. This might include the down payment, loan origination fees, and other expenses.

If you're refinancing your mortgage, the closing attorney can use the borrower's side of the HUD-1 form to show you the costs associated with the loan.