We made a Offer on a House

gailc

TCS Member
Top Cat
Joined
May 18, 2004
Messages
11,567
Purraise
13
Location
Wisconsin
Is that including homeowners insurance and property taxes??
 

yosemite

TCS Member
Veteran
Joined
Apr 26, 2001
Messages
23,313
Purraise
81
Location
Ingersoll, ON
That is so exciting. Congratulations!

I don't know if it's the same in the US, but it is better to do taxes and insurance separately here in Canada. If it is included in the mortgage, the bank "borrows" (or lends it to you) the money to pay your taxes up front and charge you the interest so we always opted to pay the taxes ourselves when they were due on a quarterly basis.
 
  • Thread Starter Thread Starter
  • #10

mews2much

TCS Member
Thread starter
Top Cat
Joined
Nov 19, 2007
Messages
13,424
Purraise
27
Location
Central Valley,California
Its better to do it seperate here too. We asked for it that way. I can not wait to be able to do what we want. Here we have Rules.
 

mrblanche

TCS Member
Veteran
Joined
Jan 28, 2008
Messages
12,578
Purraise
119
Location
Texas
In the U.S., you generally pay your insurance and taxes with your payment. In fact, you are paying 1/12 of your next year's insurance and taxes each month. That way, when it comes due, the money is there and it gets paid. A good reason for that is that way, the mortgage company can be sure you're not going to lose your house to a fire or a tax lien and leave them holding the bag.

In fact, when you close, you usually have to buy a year's insurance and pay 2 months taxes in advance.

There are laws governing how much the mortgage company can hold. Our payment has fluctuated a little. We just got a letter saying our payment would be going down $50 per month starting next month, and a check for $600 for the excess escrows they were holding, to get them back under the limit.
 
Top