Question

Why are closing costs a one time fee?
a.
Payment of closing costs is required because it is a sign to the lending institution that the investor has every intention of making payments on time.
b.
If closing costs were paid over time, they would most likely be forgotten and never paid off.
c.
Most home buyers pay for their houses in full, and consequently pay for the closing costs in full as well.
d.
The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.

Answer 1

d.

Closing costs pay for one-time services and fees required to complete the sale and loan (title search/insurance, recording fees, appraisal, realtor commissions, loan origination, etc.). Because those services are performed at closing, the associated fees are charged once. (Note: ongoing obligations after closing include mortgage payments, property taxes, insurance, and any HOA fees.)