| Posted By |
Message |
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
if we opt to pay our taxes ourselves and not through the mortgage company...
Will our closing costs be significantly lower? Or will it even out?
ETA - I should say that lower closing costs are NOT why we want to pay our taxes ourselves. I'm just curious if the closing costs would wind up lower.
Thanks!
Message edited 7/20/2007 10:31:20 AM.
|
Posted 7/20/07 10:30 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
Well I guess it would be lowered a little bit because they won't be taking the "cushion." But from my experience working with the bank, they will require the title company to collect all open taxes and any due within 45 days of closing.
|
| Posted 7/20/07 10:35 AM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
Posted by MikesWife
Well I guess it would be lowered a little bit because they won't be taking the "cushion." But from my experience working with the bank, they will require the title company to collect all open taxes and any due within 45 days of closing.
Right, but we won't have to escrow any taxes, correct?
|
| Posted 7/20/07 10:36 AM |
| |
|
MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
Posted by Kara
Posted by MikesWife
Well I guess it would be lowered a little bit because they won't be taking the "cushion." But from my experience working with the bank, they will require the title company to collect all open taxes and any due within 45 days of closing.
Right, but we won't have to escrow any taxes, correct?
Nope.
|
| Posted 7/20/07 10:37 AM |
| |
|
seank80
Don't Taze My Dog Bro!!
Member since 5/07 2240 total posts
Name:
Sean
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
Traditional closing costs will be the same I believe. I think they are seperate from the reserves. Basically they want you to have a few months of taxes in reserves. If you default on the loan the tax man gets his money first so this is why they have a reserve. If you're not paying this out at closing the out of pocket goes down a lot. I am not sure about home owners insurance though. We had to prepay a year.
|
| Posted 7/20/07 10:37 AM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
Cash in the bank for reserves isn't a problem. I don't mind keeping it in my account - just prefer it doesn't stay in the bank's account.
Homeowners I don't mind paying through the mortgage company - it's not nearly as high as our taxes will be.
|
| Posted 7/20/07 10:40 AM |
| |
|
csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
|
Re: if we opt to pay our taxes ourselves and not through the mortgage company...
The title company will collect all open taxes that have to be paid prior to your first payment no matter if you escrow or not. In addition if you escorw they will take a certain amount of months for insurance (usually 2-3) and taxes (months will depend on when they are next due). If you taxes are due in December and you close in August they are going to collect at least 6 months worth of taxes. It lowers your bank closing costs in a sense because you dont' have to come up with the cushion. Your traditional closing costs will not change--title charges, application fee, credit report fee etc.
|
| Posted 7/20/07 12:17 PM |
| |
|
