Finance
A Maine homebuyer's closing costs include prepaid items such as homeowner's insurance and prepaid interest. These prepaid items are paid at closing to:
AThe real estate brokers
BEstablish escrow reserves and fund interest through the first full payment month✓ Correct
CThe state of Maine
DThe home warranty company
Explanation
Prepaid items include homeowner's insurance premiums, prepaid mortgage interest (from closing date to end of the month), and initial escrow account deposits. These are paid at closing to fund the escrow account.
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