Pete, Both Buyer and Seller in Rockledge, PA

Refi question, investment property Philadelphia, PA.

Asked by Pete, Rockledge, PA Sat Dec 29, 2012

Attempting to refi with Wellsfargo Bank on an investment property (Duplex NE Phila). Property appraised 188k. New Mortgage is 98k. Closing cost 6,469.00. Rate 3.875 (15 year) Here is the question that nobody knows the answer to: Line item 1304 on HUD Estimated taxes open 1/1 parcel641175800 to Dept of Revenue $2959.00. The Present escrow balance is $2326.00 which is being applied, they are also asking for $1046.00 initial deposit into Escrow and of course my payment will included taxes and insurance starting in Feb. They thought line item 1304 was a lean which we know is not, now they are saying it is city school taxes. Dose the city now break out school taxes from property taxes ? Thanks for the help.

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This is not something that can be explained by e-mail if you call me at 215-725-5700 X49 I can enplane the Tax part and the reason for the additional escrow deposit. I'm going to try but if you get confused please call me. Here we go if you take $2,959 and divide it by 12 The number of escrow payments per year you get the escrow deposit of $246.58 rounded up to $246.59 per month. When you take $1046 and divide that by $246.59 it will give you 4.25 which is the number of months that they want in reserve. This allows for tax increase, missed or late payment or another event which may affect the account I'm doing this without seeing any paperwork Please feel free to call me at 215-725-5700 X49.

Philip J. Cunningham Sr
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia,PA 19152
215-725-5700X49
PhilCunningham2004@yahoo.com
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Sat Dec 29, 2012
Not sure that I can offer a definitive answer to your question, however here is what I can contribute:

At our most recent property purchase there was no separate line item on the HUD sheet for school tax, which leads one to believe that it is incorporated into the property tax.

According to the website, Committee of Seventy http://(www.seventy.org that tracks local and federal government actions), this is what they post on Philadelphia property taxes:

Where do property tax dollars go?
Philadelphia has traditionally split property tax revenues 40/60 with the School District: 40% goes to the city’s operating budget and 60% to the public schools.

Finally, if you have any investment properties that are titled in an LLC (not your name personally) and need to refi, let us know, as that is what we assist real estate investors with. While the rate may be a little more than 3.87%, (closer to 5%) the mortgage typically will not appear on your personal credit report and not effect a FICO score (unless of course you do not pay it).
0 votes Thank Flag Link Sat Dec 29, 2012
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