Legal Definitions - recurring closing costs

Recurring closing costs are expenses that a homeowner must pay after purchasing a home. These costs are the first of a series of payments that will continue over time. Examples of recurring closing costs include:

• Prepaid interest
• Homeowners’ association (HOA) fees
• Homeowners' insurance
• Property taxes

For instance, if a homeowner pays $1,200 in property taxes annually, this cost will recur every year. Similarly, if a homeowner pays $100 per month for HOA fees, this cost will recur every month.

Recurring closing costs are different from nonrecurring closing costs, which are one-time expenses that a homeowner pays at the time of purchase. Examples of nonrecurring closing costs include appraisal fees, title insurance, and attorney fees.