Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Okay so I technically own my house, it was built for my great-grandmother & has just been passed down until it's now mine. I am ready to sell it & move out of state. So this will technically be my 1st time buying a house. I am looking in the Daytona Beach area.
My questions are is the property taxes really included in the mortgage? And is the home insurance really included in the mortgage? I'm use to getting your taxes every year from the tax assessors office & paying them in full in February & we already have house insurance through State Farm that we pay every month, can not we still use them? Or is the mortgage calculators just figuring that into your overall monthly costs & it's not really part of your mortgage payment?
Okay so I technically own my house, it was built for my great-grandmother & has just been passed down until it's now mine. I am ready to sell it & move out of state. So this will technically be my 1st time buying a house. I am looking in the Daytona Beach area.
My questions are is the property taxes really included in the mortgage? And is the home insurance really included in the mortgage? I'm use to getting your taxes every year from the tax assessors office & paying them in full in February & we already have house insurance through State Farm that we pay every month, can not we still use them? Or is the mortgage calculators just figuring that into your overall monthly costs & it's not really part of your mortgage payment?
TIA
If you have a mortgage, yes, typically the mortgage company takes care of all those bills. They divide the annual payment into 12 monthly payments and tack it in to your mortgage payment. It is then held in escrow until time to pay it each year. It is not part of the mortgage itself, but it is part of the payment you make. This is to ensure that you are paying taxes since tax liens usually take priority if one defaults, and also to ensure you have coverage so the house would be covered if there was a loss. It is all about protecting their investment.
You can pick any insurance company so you can likely stick with your current one but the policy will be rewritten, especially if you’re moving out of state.
Okay so I technically own my house, it was built for my great-grandmother & has just been passed down until it's now mine. I am ready to sell it & move out of state. So this will technically be my 1st time buying a house. I am looking in the Daytona Beach area.
My questions are is the property taxes really included in the mortgage? And is the home insurance really included in the mortgage? I'm use to getting your taxes every year from the tax assessors office & paying them in full in February & we already have house insurance through State Farm that we pay every month, can not we still use them? Or is the mortgage calculators just figuring that into your overall monthly costs & it's not really part of your mortgage payment?
TIA
Congrats on moving on. Just want to point out a nuance in your scenario that you should be clear about with your lender. You are a first time buyer, but not a first time owner. If someone offers you a first time buyer benefit or discount, make certain they understand the current ownership. While it will be obvious when underwritng your file, it may not be clear when locking, especially if you have more than one person involved. So if asked, "yes, first time buyer, not first time owner."
AFTER the transaction closes tuck the money aside somewhere safe.
When you get to the new town... plan to rent for a year or more.
Don't commit to a mortgage until you're certain of 1) the new job
2) have made some new friends 3) have had time to poke around as a fulltime resident.
Daytona is a fun carnival to VISIT during event weeks...
but after being there fulltime maybe you'll discover that visiting is better.
Quote:
...is the property taxes really included in the mortgage?
And is the home insurance really included in the mortgage?
They'll be in the ESCROW portion of the payment that most lenders will demand; aka PI + TI.
Many mortgage companies require the taxes and insurance costs to be escrowed but some don't. There has been a trend that some lenders are waiving that requirement because of the administration costs. When you shop for a lender you can ask if the lender will waive that requirement.
If you are putting 20% or more down on you purchase, it is almost certain that escrowing for taxes and insurance is 100% optional. If you want to pay them on your own, just tell your lender that. BTW-this is nothing new. It has been this way 'forever'.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
