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Do I have to include my Insurances in my loan?

I would rather pay up front (lump sum payment) for property taxes, homeowners insurance and PMI payments, but my loan officer is telling me my lender requires the borrower to open an escrow account. I don't want to increase my monthly debt. Any info is helpful. by florastone_cali33475 from Miami, Florida. Apr 23rd 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed.. if you are using FHA, VA or Conventional.. you have to have an escrow account and impounds,, it's mandatory.. The same goes if you use conventional and you put less than 20% down.. but If you are going conventional, and you are putting 20% or more down, then you do have the option to waive escrows, but typically, loan pricing is a bit higher.. But regardless of whether or not you have your taxes and insurance impounded, your monthly debt remains the same as far as the loan purpose is concerned... if you owned a property free and clear, we would still take your annual taxes and insurance amounts, divide them by 12 and attach that as a monthly debt against that property.. the amount you pay out annually is the same, in both scenarios. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 24th 2018
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