Items that generally must be paid for at the time of closing and are generally recurring charges. Prepaid items may include the following:
– First year premiums for hazard, flood, and Mortgage insurance, as applicable to the transaction,
– Prorated interest,
– Any special assessments which must be prepaid (i.e., water/sewer connection, etc.) and,
– Escrow accounts for any of the above.
Whether you are buying, refinancing, investing, or considering how to use your home equity, the first step is a conversation about your goals and the available options.