Home Buying in Kenner>Question Details

Moni  Jone, Home Buyer in Louisiana

I will be a first time home buyer in Louisiana and I want to pay my home owners insurance up front, Can I?

Asked by Moni Jone, Louisiana Sat Jun 28, 2008

Help the community by answering this question:


When you choose not to escrow your insurance and taxes -- you have to meet certain loan specifications. Usually if you do not have at least 20% to put down on the purchase, this is not an option. There will also be an increase to the rate for choosing not to escrow.

Also, if you pay insurance upfront independently of the lending company, you will be expected to do so for your property taxes also.

Escrow accounts are set up to guarantee to the lender that the property will be insured and taxes will be paid. The lender does not make money off of your escrow -- they simply divide your tax bill and insurance quote by 12 and add that to your monthly note.

Your mortgage company should be able to answer all of these questions for you. If you feel like you are being underserved, please give me a call.

-Chasity Marshall
LA Lending
Web Reference: http://www.LALending.net
0 votes Thank Flag Link Tue Jul 1, 2008
Most mortgage lenders will require a full year plus 3 months worth of insurance to be paid at the closing. That way you are paid for the first year and the remainder is put in escrow towards the next year's policy. If you truly do not want your insurance premiums to be inlcluded in your monthly mortgage payments, talk with your lender to determine if they will allow you to provide proof of insurance each year rather than escrow. Just be aware that you could be required to pay a higher rate and you may be limiting your options on choosing a lender.
0 votes Thank Flag Link Sat Jun 28, 2008
You will pay it up front at the closing.
Do you want to pay it each year up front on your own and not escrowed?
You can, but sometimes a mortgage company will have you take a hit in the rate (raise the rate), they would rather you escrow it, but it should be an option with your loan, but not every loan is the same. Have you asked your mortgage company?
0 votes Thank Flag Link Sat Jun 28, 2008
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