When you're required to have Private Mortgage Insurance on your loan, the lender will require the property taxes and home owner’s insurance to be collected monthly as part of the total mortgage payment. The loan servicer will make the bi-annual [...]
PMI is a Recurring Closing Cost or Prepaid Item. When the loan amount is greater than 80% of the property price/value the lender requires you to have insurance on the loan. This protects the lender in case something happens and [...]
Insurance is one of the Recurring Closing Costs or Prepaid Items paid in your closing costs. This insurance includes Home Owner’s Insurance/Fire Insurance/Hazard Insurance (three terms for the same exact thing) and in some cases, Private Mortgage Insurance (PMI).
Prepaid Items are costs that are associated with the maintenance of the borrower’s loan and normal property maintenance, regular recurring costs that are paid monthly or annually. These costs include normal interest due on the loan, property taxes that are [...]
There are two different categories of closing costs. Recurring Closing Costs, also called Prepaid Items, and Non-Recurring Closing Costs, NRCCs.
Closing costs are required fees that are paid at the closing of a real estate transaction. The point in time called the "closing" is when the title to the property is conveyed to the buyer. Closing costs are paid by [...]
