Pre-paid Expenses

Definition

  • 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.

Synonyms
pre-paids, upfront expenses, pre-paid closing costs, pre-paid items

Alternate Spellings
pre-paids, prepaid items, pre-paid, prepaids

Related Terms and Acronyms

  • 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.
  • Appraisal Fee Definition,
    • What someone charges to deliver a professional opinion about how much a property is worth.
  • 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.
  • 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.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • 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.
  • Legal Fees and Disbursements Definition,
    • Charges paid on your behalf by a solicitor that are in addition to professional costs.
  • 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.
  • Pre-paid Interest Definition,
    • Interest that a borrower pays before it is due, usually to save taxes.
  • Roll In Definition,
    • To include certain closing costs, such as origination and settlement fees, in the mortgage.
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