Home Buying in Marietta>Question Details

Deborah Mall…, Home Buyer in Atlanta, GA

are taxes included in a 30 yr fha mortgage?

Asked by Deborah Mallory, Atlanta, GA Fri Feb 1, 2013

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This question was asked from this property: http://www.trulia.com/property/3107171294-2394-Southern-Oak-…

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It is mandatory that all taxes and insurance be escrowed on FHA loans.

Marc D’Angelo
Mortgage Banker
404.925.8291 Cell
678.985.6834 Fax
mdangelo@brandmortgage.com
apply online: mdangelo.brandmortgage.com
0 votes Thank Flag Link Wed Feb 6, 2013
Lenders typically require imounds for taxes, insurance and mortgage insurance when the loan to value is less than 80%. That means a borrower would need a 20% down payment to avoid the mandatory impounds. Mortgage insurance is also not required with that size down payment.

You might want to consider a conventional loan rather than an FHA loan. There are conventional loans that allow a borrower to only put 3% down instead of the 3.5% down that is required by FHA. Mortgage insurance is also more expensive on a FHA loan than on conventional . Lastly, FHA has just changed their guidelines. No longer is mortgage insurance removed when a loan reaches 78% loan to value. Mortgage insurance will remain on the loan forever. The only way to remove it is to refinace the property at some point in time. With conventional loans, mortgage insurance can be removed once there is a certain amount of equity in the property. The equity position required can vary between lenders but it's usually between 75 to 80% loan to value.
0 votes Thank Flag Link Fri Feb 1, 2013
Hi Looking,

Get with a lender and let them walk you through the 101 basics of getting a home loan and what options you have based on your credit and cash position.

Conventional borrowers can elect to pay their own taxes and insurance rather than having the lender factor it into the loan- if they have a large enough down payment.

Typically FHA borrowers are required to have the lender to set up an escrow impound to pay the taxes and insurance on the borrowers behalf - this "all inclusive" loan payment is described by the acronym PITI - which stands for Principal, Interest,Taxes, and Insurance.

Good Luck
0 votes Thank Flag Link Fri Feb 1, 2013
Definitely yes... they are divided for monthly payments and attached along with insurance and set aside to be released when due by mortgage company.
0 votes Thank Flag Link Fri Feb 1, 2013
Yes, HUD requires that taxes and insurance be escrowed on all FHA mortgages.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Fri Feb 1, 2013
The mortgage company will escrow your tax and insurance payments and add them to the monthly mortgage payment so you will have only one payment. Your payment probably include your Mortgage Insurance payment as well.
0 votes Thank Flag Link Fri Feb 1, 2013
If you are talking about the Estimated Monthly Payment that is shown on the listing page, just point your mouse over the payment amount and you will see how it was calculated.

Every purchase will be different depending on your final purchase price, down payment, interest rate, etc. Any references to monthly payments will always be an estimate until you know the final numbers for your purchase.
0 votes Thank Flag Link Fri Feb 1, 2013
Most Lenders want (insist) on "IMPOUNDS" which is a way of saying that you include PRINCIPLE, INTEREST, TAXES and INSURANCE in your monthly payment:
The Bank holds the money, pays the bills as they come due, and sends you a monthly statement showing your BALANCES in your Impound Accounts.

The Banks do not want you to lose your house because you didn't pay those bills; and it happens; a lot!

If your Lender does not insist; I suggest that you do.
0 votes Thank Flag Link Fri Feb 1, 2013
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