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Tuesday, June 27, 2006

Prepaid items

Fees paid on the closing date to cover future costs like property taxes, interest, mortgage insurance and hazard insurance

Lenders want to make sure that their investment is secure, so they may require you to deposit a sum of money in an escrow account to prepay recurring costs, such as:
(1) your first six months of property taxes
(2) your first two months of hazard insurance
(3) your first two months of mortgage insurance, if required
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