Non-Recurring vs Recurring Closing Cost

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.