Home Buying in 11727>Question Details

Emely Cruse, Home Buyer in Coram, NY

I've been looking to buy a house.

Asked by Emely Cruse, Coram, NY Tue Mar 5, 2013

When I take on a mortgage for the first time, do I have to escrow or can I choose to pay the taxes and insurance on my own outside of my mortgage payment? Is it best to do it one way over the other?

Help the community by answering this question:


Emely it depends on what loan program and down payment. FHA, regardless of down payment, you will be required to escrow. Conventional loans you have the flexibility of choosing depending on your down payment. I would suggest to consult your Loan Officer and see what they say. There's no real advantage with either decision, it's something that you must think about (if you have the option to choose) and see what works best for you. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
4 votes Thank Flag Link Tue Mar 5, 2013
I am not an expert in mortgages. Rules and regulations are continually changing in the mortgage industry as with real estate. I can answer any real estate questions and be sure I am up to date with answer. I would recommend that you ask these question to a reliable mortgage broker. If you are not working with one yet, let me know and I will make a couple of suggestions to whom I recommend to my clients that are purchasing. Hope this is helpful to you.
0 votes Thank Flag Link Tue Mar 5, 2013

All depends on the type of mortgage you are applying for, if you need help finding a mortgage professional, I will be happy to recommend a few people you can trust. The first step in making your purchase is to get pre approved, this way you know exactly how much of a mortgage you can expect to be able to get. There is nothing worse than looking for a home, finding one you really like and find out afterwards that you can't get a mortgage to cover it. When you are ready, feel free to give me a call and I will point you in the right direction, and help you to find a home that suits your needs. If you have a smartphone, please download my app and you can search the MLS from your smartphone, just type my name in the App Store, Ronald Zarembok, and download for free.

Ronald Zarembok
Licensed Real Estate Salesperson
Exit Realty Achieve
0 votes Thank Flag Link Tue Mar 5, 2013
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore visit with any licensed loan officer; he/she can answer any questions you may have as they relate to to you, and depending on the type of loan you qualify for....
0 votes Thank Flag Link Tue Mar 5, 2013
Hi Emely, there is no real advantage to paying your own, there is a tiny savings but not much. Before looking for your new home you should get pre-approved by a lender. When you get a free pre-approval you'll find out exactly what you can afford and you'll be able to submit offers if you find something you like. I have a beautiful diamond ranch in Coram that might be just right for you lol. Please feel free to contact me if you have any questions.
Thank you
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
#1 Listing & Selling Office on Long Island
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Tue Mar 5, 2013
Hi Emely,

Most lending insitutions will have you escrow for taxes and insurance but not all. Are you working with a mortgage banker/broker? If so they will be able to answer your question based on the program they are putting you in. If you need a mortgage banker please email me privately and I will forward you a few to speak with.

All the best to you!

Donna Lomenzo, Broker
Coldwell Banker Neyland Realty
Middle Island, NY
0 votes Thank Flag Link Tue Mar 5, 2013
There is no better way. If you do not want to escrow taxes and insurance you need twenty percent down
0 votes Thank Flag Link Tue Mar 5, 2013
Hi Emely - different lenders may have different standards and the rule of thumb is 20% or more as a "down" (intital investment) will get rid of mandated escrow deposits of property taxes and insurance. Now, there is an upside to escrowing those deposits as well - you don't have to remember to pay them, as the lender does it for you. I have clients who just fax/email their insurance and tax bills to the lender and viola, no worries. Bottom line = check with lender re: their policy for the specific loan you are obtaining. Hope this helps. Cheers!
0 votes Thank Flag Link Tue Mar 5, 2013
If you have 20%down you don't need to escrow your taxes and insurance
0 votes Thank Flag Link Tue Mar 5, 2013
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