Mortgage Payment Question..

We are closing on our house on Thursday. Included in the closing cost are 6 ot 7 months of taxes and we also have to pay a year of our homeowners insurance.

So, does that mean that the first mortgage payment will not include property taxes and homeowners insurance or do you pay that every month to put in escrow?

Re: Mortgage Payment Question..

If you are escrowing, you still have to pay every month towards escrow.

This is why we decided to pay our taxes on our own.

Re: Mortgage Payment Question..

It gets paid every month and put in escrow.

Re: Mortgage Payment Question..

OK, another question...can you tell I'm all new at this?

Do you pay homeowners insurance with your monthly payment or on your own? Or, like your taxes is this something you can decide to do? When do you make that decision?

Re: Mortgage Payment Question..

If they are setting up escrow for your taxes, they usually do the same for insurance.

You typically pay the insurance company up front for the first year of insurance (the bank will want to see a copy of this payment - or insurance binder).

Then your monthly insurance payment is included in your mortgage payment and yes it starts with your first month after buying the house so you are always a year ahead of your insurance payments.

So typically with escrow you are a year ahead of your insurance, and six months ahead of your taxes.

Re: Mortgage Payment Question..

OK, thanks so much for the answers!