I pay my taxes & insurance separately and my insurance company sends the renewed policy to my lender every year. Stay Free!!
Please contact me with your Real Estate needs. I can always be reached on my cell/text 208-602-5157.
The simple answer why mortgagees require this is because they have interest invested in the property.
As some of the professionals here mentioned, lapse or expired home owner's insurance means no insurance coverage on the collateral -which is the property.
Unpaid property taxes may result to lien on the property. Property Tax Liens are in the first position.
I hope this helps.
usually if you have 20 percent or more down the lender will allow you to pay your taxes and insurance outside of the escrow each month so that your principal and interest would be the only amount that you have to pay each month. If you would like to speak to a lender, to find out the specifics for your qualifications, call Jane Hopkins at 208-947-1127.
Depending on how much your downpayment is and what type of loan program you are going with, some lenders will allow you to pay your real estate tax and home owners insurance on your own. Generally if you put down 20% you can pay on your own; some lenders will allow you to put less down and still pay on your own.
If you are purchasing in Illinois, please call or email me for more information. You can also visit my website to complete an application.
I look forward to helping you!
Smart Mortgage Centers
Web Reference: http://www.smartmortgageinc.com
I am of the opinion that it doesn't hurt to ask. You will get a yes or no answer.
I have known clients who, after paying their mortgage down to a low loan-to-value, have been able to take over paying taxes and insurance themselves. But for most people with 20% or less down, this won't be an option. When you include these expenses with the monthly mortgage payment, the lender is 100% certain that these critical items are paid on time and in full.