When we refer to non –recurring closing costs, these would include the following: title & attorney’s fees, appraisal, lender's fees, credit report fees, state taxes and other expenses which are non-recurring over the life of the loan.

Lender's use the term non-recurring to refer to only those expenses which are one time, and to exclude items such as pre-paid interest, insurance, and property taxes, which are considered recurring closing costs because they will continue to be expenses every month (also commonly referred to as pre-paids and/or escrow setup). Recurring costs are not covered expenses in a no closing cost loan.