Prepaids

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January 1, 1 7 min read Definitions

Prepaids Escrow Account Loan Closing Real Estate Taxes Hazard Insurance Private Mortgage Insurance

Prepaids at closing refer to the upfront payments required by a lender to fund an escrow account for future payments of property-related expenses such as hazard insurance, property taxes, and private mortgage insurance (PMI). They might also cover interest accruing from the closing date until the end of the month.