Early Closing Cost Reimbursement
Definition
- Some line-of-credit lenders waive underwriting costs when a credit line is opened in anticipation of future profits. If the credit line is closed early, fees are retroactively imposed by the lender.
Synonyms
compensation, closing credit, repayment, remuneration
Related Terms and Acronyms
- Closing Costs — Definition,
- The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Non-Recurring Closing Costs (NRCC) — Acronym,
- One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report.
➥ Non-recurring fees at closing are those that are paid once such as a property inspection or property appraisal fees. Recurring fees are those that are paid again and again such as property taxes, condo fees and property insurance. - Pre-paid Expenses — Definition,
- also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
