The process of transferring ownership from the seller to the buyer, the agreed payment from the buyer/lender to the seller, and the enactment of all the documents associated with the sale and the loan. On a refinance, there is no transfer of ownership, but the closing includes repayment of the old lender.

References

Guttentag, Jack. "Mortgage Glossary". 2008 <http://www.mtgprofessor.com/glossary.htm>.