lubensky, Home Buyer in San Diego, CA

Do monthly payments include taxes and insurance?

Asked by lubensky, San Diego, CA Sun Mar 31, 2013

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What does the note say that the lender is having you sign?
0 votes Thank Flag Link Tue Apr 2, 2013
Most lending advertisements only reflect payment amounts for principal and interest as tax and insurance rates can vary widely depending on the scenario.

Government loans like VA and FHA require impounds for taxes and insurance to be included in your papyment, as do some conventional loans where sufficient equity is lacking. Often, you can get a slightly better rate if you do include taxes and insurance when they are not required. Your good faith estimate will inform you if your tax and insurance payments will be included in the loan, but it is always a good idea to double check with your loan officer.
0 votes Thank Flag Link Tue Apr 2, 2013
Lubensky, what you are seening there is an advertisement, I am not sure if it is the same one today. It appears to be taking the lowest possible rate may not actually be from Chase Bank though there seems to be a link to Chase. If it is Chase advertising, I would guess the loan fees are probably $12,000 or more as it says a rate of 3.55% and the official Chase Bank site says their rate is 3.75% paying a point. That means to get that rate you would need to pay maybe 3 points. It does require 20% down but does include an allowence for taxes and insurance. However the ad may have been different when you looked at it.
0 votes Thank Flag Link Mon Apr 1, 2013
Your lender should calculate your total monthly payments Including mortgage, taxes, HOA and any other additional costs on the property. So you understand what your max payment can be without being blind sided by hidden costs. They do this to ensure affordability and manage risk.
0 votes Thank Flag Link Mon Apr 1, 2013
Usually, monthly payments you see online are for principal and interest only. Your agent can tell you what your monthly payments will be based on your purchase price, but of course that will change if the assessed value end up to be different, but it shouldn't be by too much. You can have a monthly payment scenario done for each property before you even write an offer. It's so much less stressful knowing this beforehand!

Feel free to contact me anytime for help in finding a home, understanding the monthly payment, or for general property information.

0 votes Thank Flag Link Mon Apr 1, 2013
This one may with 95k down but No, not all of those advertised payments are PITI, usually with 20% down and just PI, principal and interest. The PITI , principal, interest, taxes and insurance total payment would be determined with your credit scores, debt to income ratios and how much you want to invest into the down payment and closing costs.
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0 votes Thank Flag Link Mon Apr 1, 2013
While the loan cited in the example to which you linked does include taxes and insurance that is not true of all loans. What would apply to you and the loan that you would need to buy the property that meets your needs is best determined by working with an experienced mortgage professional in the area I which you plan to buy.
0 votes Thank Flag Link Sun Mar 31, 2013
Good morning,
The quote does include taxes and insurance. Please note anytime there is less than a 20% down payment lenders demand an Impound account and monthly payments of the taxes and insurance. For loan options and complete breakdowns/estimates contact me directly.
Best wishes,

John Georges
Area Manager
0 votes Thank Flag Link Sun Mar 31, 2013
To follow up. The loan specifically quoted on this home DOES include taxes and insurance. It also is calculated with a 20% down payment. If you'd like to see this home today let me know!

Frederick Remick
Keller Williams RE
0 votes Thank Flag Link Sun Mar 31, 2013

It just depends on the mortgage company. Usually when you agree to have your taxes and insurance "impounded" you get a better rate (usually .25-.5%). If you are doing an FHA loan they will always have an impound account required. The impound account is where the portion you pay for taxes/insurance goes. When these are due, the lender pays it directly out of this account.

To answer this more completely I'd need to know the loan programs you're looking at.

You can contact me at 619-519-3287...I will be happy to answer any questions you have today!

Frederick Remick
Keller Williams RE
0 votes Thank Flag Link Sun Mar 31, 2013
The estimate (that's all it is) of $2,129 DOES include taxes and insurance. Hold your mouse above that figure and a window pops up showing how they came to the $2,129 figure.

Understand, though, that the real interest rate and monthly payments depends on your credit history, the length of the mortgage, and other factors. You might be able to pay less, or you might end up paying somewhat more.

Hope that helps.
0 votes Thank Flag Link Sun Mar 31, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
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