Property taxes in escrow at closing
Hi there! I am hoping someone can help. We are in the process of purchasing a new construction home in Carteret, NJ. I am trying to approximate closing costs and am working out scenarios to figure out what time of the month/year we are best off closing. Is there a cost difference in how much we have to put into escrow if we close mid december vs closing mid january?
Any help you guys can provide would be -wonderful-. Thanks!
You can also look into paying your taxes yourself and avoid an escrow. If you are diligent in paying your bills, you may be able to work it out where you pay the taxes.
The escrow amount for taxes will be the same (5 months) because taxes are due Feb. 1. If you close in Dec. your first payment will be due Feb,1. If yopu close in Jan. the first pay,ment will be due Mar. 1. There are also Federal regulations regarding how much monmey can be escrowed and as a bank we never calculate 6 months of Taxes for closing. should have 2 months in reserves after making paymnet. the tax check will go out sometime in January.
If you close in December check with your CPA you might be able to take the tax write off for 2008.
GREAT QUESTION !
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