San Dieguito Escrow Home » Escrow FAQs » What is the refundable pad on my closing statement?
What is the refundable pad on my closing statement?
A refundable pad is used as a buffer to offset any charges that may have changed after the file had been prefigured.  The file is prefigured using the most current figures available at the time of preparation.  Should the closing date change or any other fees be revised, it is important that the escrow holder has sufficient funds to close out the transaction without having to delay closing due to trying to obtain additional funds prior to the close.  Any unused money is always refunded to the buyer/borrower at the close of escrow with the final closing statement and hud-1 settlement statement.