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Is it necessary to include taxes in your mortgage payment?

by kosact652 from Culberson, North Carolina. Aug 12th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,431 contributions

It depends on the loan type, your lender, and the scenario. Government loans such as VA, FHA and USDA loans require that the loan Servicer (the lender) collect funds with each payment to pay the taxes and Insurance premiums when they come due. On conventional loans with 20% equity you can request no impounds (escrows) and most lenders will allow you to pay them yourself. In the old days, it was really popular to request to pay your own taxes and insurance. You could save the money in your own savings account and earn $15-$20 a year in interest, instead of earning Zero letting the lender hold on to it. Now that banks are paying 0-dot-Nothing on savings, its hardly worth the hassle. Me? I prefer to just do the auto pay. I pay the payment and they pay the taxes and insurance. This way if they forget to pay the bill, they are responsible for the late charges and penalties, not me. Just one less thing for me to have to think about. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Aug 12th 2020
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