Non-Recurring vs Recurring Closing Cost

Real Estate Agent with Compass CalBRE# 01839597

What are non-recurring and recurring closing costs?

This is a question a lot of (especially first time home buyers) are struggling with and a question I hear often from my clients. Closing costs will differ from location to location but typically range between 3% to 5% of your loan amount.

Non-recurring closing costs are charges or fees which happen only one time (non recurring). Samples of non-rucurring costs are:

  • escrow fees
  • sub-escrow fees
  • title insureance policy
  • recording fees
  • document preparation fees
  • notary fees
  • loan origination
  • loan discount points (even elected)
  • wire fees
  • funding fees
  • messenger/courier/overnight fees
  • loan tie-in fee
  • underwriting fee
  • credit report 
  • inspections
  • Appraisal

Remember: anything you only are charged once during the process of purchasing a home.

Recurring closing cost are the oposite of non-recurring closing costs and include

  • property taxes
  • interest
  • fire/flood and/or home owner insurance
  • homeowners association fees
  • mortgage insurance

Remember: any fees or charges that are paid more than once.



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Anja K. Kerstens



Buy or Sell with your area specialist and REALTOR® getting homes sold faster.


Comments (1)

Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL

Anja - Great explanation for home buyers of what is non-recurring and recurring closing costs.

Nov 05, 2012 10:47 AM