Another Mortgage Question

[iamwiz82]

Just to recap, it is normal for me to have a total of 12 months worth of taxes in escrow in June, when 6 months are due?

 

[NL5]

yep.


But according to CPA you can waive them for a quarter point.

 

[GasX]

Originally posted by: spidey07
20K in taxes?

holy smokes. I would have to have about a 5 million dollar home to get that high.

Sadly, the hoime is nowhere near that in value. It is a small town in New Jersey with arguably the best public schools in the state. Once we take ownership, we are going to see what we can do about lowering the bill...

 

[rahvin]

Originally posted by: iamwiz82
Just to recap, it is normal for me to have a total of 12 months worth of taxes in escrow in June, when 6 months are due?

That all depends, escrow accounts require a buffer, somewhere around 300. Also it would depend on how your taxes are paid, I find the idea of biannual property taxes very foriegn. Locally for me taxes are only paid once a year.

 

[KK]

Originally posted by: Lola
plus, we are having to pay insurance in full for the year as well as we are paying monthly for insurance as well, thats what we dont understand

Insurance premiums have to be paid all at once, therefore to be covered, you pay it in full at first, then you would start building escrow monthly till next year, and the amount that you put in for insurance should cover your next year premium.

As stated above, you can pay per month outside escrow but there is usually so type of fee for that. And the escrow people aren't going to send monthly checks to the insurance people.

 

[Lola]

Originally posted by: KK

Originally posted by: Lola
plus, we are having to pay insurance in full for the year as well as we are paying monthly for insurance as well, thats what we dont understand

Insurance premiums have to be paid all at once, therefore to be covered, you pay it in full at first, then you would start building escrow monthly till next year, and the amount that you put in for insurance should cover your next year premium.

As stated above, you can pay per month outside escrow but there is usually so type of fee for that. And the escrow people aren't going to send monthly checks to the insurance people.

i know, they pay it in full however, i know that because of they type of loan we have, we are not able to opt out of the escrow

 

[NL5]

Originally posted by: Lola

Originally posted by: KK

Originally posted by: Lola
plus, we are having to pay insurance in full for the year as well as we are paying monthly for insurance as well, thats what we dont understand

Insurance premiums have to be paid all at once, therefore to be covered, you pay it in full at first, then you would start building escrow monthly till next year, and the amount that you put in for insurance should cover your next year premium.

As stated above, you can pay per month outside escrow but there is usually so type of fee for that. And the escrow people aren't going to send monthly checks to the insurance people.

i know, they pay it in full however, i know that because of they type of loan we have, we are not able to opt out of the escrow

FHA?

 

[Yax]

The 6 month escrow was a condition from your bank before they granted you the loan. Its to secure taxes in case you default and they end up with the home. After that, you can call them up and ask them to close the escrow account. They'll return any money in the account to you, but when tax time comes around, you'd be responsible to write a check for it yourself. Eitherway, the taxes must be paid.

 

[bunker]

When we bought our first house a few years ago we got a decent sized check shortly after closing because they took too much at the start.