Pre-paid Expenses

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • pre-paid closing costs
  • upfront expenses
  • pre-paids
  • pre-paid items

Alternate Spellings

  • pre-paids
  • prepaids
  • pre-paid
  • prepaid items

Definition of Pre-paid Expenses

  1. Recurring costs such as taxes, insurance, and interest that are paid at the time of closing. However, these costs cannot be financed. Also known as prepaid items or pre-paids.

Related Terms and Acronyms

  • Roll In Definition,
    • To include certain closing costs, such as origination and settlement fees, in the mortgage.
  • Closing Costs Definition,
    • The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
  • Non-Recurring Closing Costs (NRCC) Acronym,
    • One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report.
    Non-recurring fees at closing are those that are paid once such as a property inspection or property appraisal fees. Recurring fees are those that are paid again and again such as property taxes, condo fees and property insurance.
  • Early Closing Cost Reimbursement Definition,
    • Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
  • Appraisal Fee Definition,
    • What someone charges to deliver a professional opinion about how much a property is worth.
  • Pre-paid Interest Definition,
    • Interest that a borrower pays before it is due, usually to save taxes.
  • Assumption Fee Definition,
    • A lender's charge for updating records when a buyer takes responsibility for a mortgage from the seller.
  • Closing Definition,
    • In real estate, the delivery of a deed, the payment of the purchase price, the signing of notes, and the paying of closing costs, which completes a real estate transaction.
  • Legal Fees and Disbursements Definition,
    • Charges paid on your behalf by a solicitor that are in addition to professional costs.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • Application Fee Definition,
    • What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
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