taxes and insurance when closing. our mortgage company does not require escrow taxes and insurance, therefore the closing costs are low.
i.e. (good faith estimate) $5,600 on a $200,000 loan.
KarenB
Posted:
Member since
Re: What is the benefit of pre-paying
The reason you have to pre pay is that it protects the bank. This way they know the taxes are getting paid and so is the insurance. Some people don't pay their taxes and then lose the house and the bank gets stuck.
skew
Posted:
Member since
Re: What is the benefit of pre-paying
i understand why many mortgage companies require that you pre-pay, but ours DOES NOT. they said we CAN pre-pay taxes and insurance, but it is our choice.
what is the of pre-paying benefit to us besides not having to worry about it a a later time?
KarenB
Posted:
Member since
Re: What is the benefit of pre-paying
As far as I can tell no other benefit is there. The only thing it saves you is mailing out a couple of bills at a later date.
laughinlala
Posted:
Member since
Re: What is the benefit of pre-paying
The other thing to consider is that you can collect the interest on that $ if you have it in your account rather than pre-paying the insurance and taxes and letting them collect the interest.
