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Good Faith Estimate question
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Good Faith Estimate question
we received our GFE from the bank last week. is it normal that they include in our monthly payment an estimate of homeowners insurance of $150/month AND also in the prepaid section have $1800 paid at closing for "fire and hazard insurance premium" AND 5 months "hazard insurance escrow" at $750.00.
it just seems odd that we have to pay monthly AND have to pay upfront at closing.
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Posted 8/1/09 9:58 AM  |
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GigglesBear
LIF Infant
Member since 3/08 126 total posts
Name:
Michael
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Re: Good Faith Estimate question
Posted by waiting4ablessing
we received our GFE from the bank last week. is it normal that they include in our monthly payment an estimate of homeowners insurance of $150/month AND also in the prepaid section have $1800 paid at closing for "fire and hazard insurance premium" AND 5 months "hazard insurance escrow" at $750.00.
it just seems odd that we have to pay monthly AND have to pay upfront at closing.
I know that banks want you to have the first full year of home insurance paid in full prior to closing, but the extra money is to create an escrow account, if that's how you or whoever opted to handle monthly payments. Usually this is also done for taxes as you have to bring x months worth of taxes to setup an account that the bank uses.
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| Posted 8/1/09 10:09 AM |
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Re: Good Faith Estimate question
Posted by GigglesBear
I know that banks want you to have the first full year of home insurance paid in full prior to closing, but the extra money is to create an escrow account, if that's how you or whoever opted to handle monthly payments. Usually this is also done for taxes as you have to bring x months worth of taxes to setup an account that the bank uses.
i understand about the taxes, but to have to pay insurance in full AND have an escrow account AND pay monthly just seems like alot.
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| Posted 8/1/09 10:15 AM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Good Faith Estimate question
Posted by waiting4ablessing
Posted by GigglesBear
I know that banks want you to have the first full year of home insurance paid in full prior to closing, but the extra money is to create an escrow account, if that's how you or whoever opted to handle monthly payments. Usually this is also done for taxes as you have to bring x months worth of taxes to setup an account that the bank uses.
i understand about the taxes, but to have to pay insurance in full AND have an escrow account AND pay monthly just seems like alot.
I took my taxes out of escrow and am taking my HO out of escrow with my refi. It is so annoying. They adjust it constantly and take extra money to sit there. It is a PIA!
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| Posted 8/1/09 10:49 AM |
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Re: Good Faith Estimate question
i just called my loan officer and she said the 1 year estimate of $1800 is not paid to them at closing its just an estimate to what will be paid to the insurance company. she just put it in to give us an idea of how much $ we will need for everything.
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| Posted 8/1/09 12:24 PM |
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