Definitions for "Prepaid Items"
Items that generally must be paid for at the time of closing and are generally recurring charges. Prepaid items may include the following:first year premiums for hazard, flood and mortgage insurance, as applicable to the transaction
Those expenses of property which are paid in advance of their due date and will usually be prorated upon sale, such as taxed, insurance, rent, etc.
Items that must be paid for at the time of closing; most common are: interim interest, taxes, first year premium for required insurance, and fees applicable to certain loan products.