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.
Feel free to contact me anytime for help in finding a home, understanding the monthly payment, or for general property information.
I can email you different loan program scenarios and costs after a few dozen questions...
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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.
Keller Williams RE
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!
Keller Williams RE
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.