Wa Macdonald

I have included a pdf file on my web site of agencies and PA counties that provide closing cost assistance money. These programs have been approved for use in conjunction with a PHFA home loan. - Fri Nov 20 2009, 09:35

Great responses! Pennsylvania is a regulated state, meaning all title agents are required by the Pennsylvania Insurance commission to charge the same rate. So shopping for the "best rate" is unnecessary. The settlement services will vary. Reissue rates (discounts) are available providing you meet the guidelines - the discount is 10%. You can calculate the PA title insurance cost and view the guidelines by clicking on the link below. - Wed Nov 18 2009, 14:14

Confusing subject. Jennifer and Edmund are correct. There are two parts. One part is repaying the seller for any real estate taxes that they paid for the entire year. So let’s assume you’re closing on July 1st, and the seller paid $1,200 in taxes, you would reimburse the seller for $600 – the taxes from July 1st to December 31st. After all, it’s only fair that you repay the seller for the real estate taxes while you occupy the property. Part two: The lender will require you to “escrow” some taxes so that this sum plus your monthly payment will be sufficient to pay the real estate taxes when they come due. This isn’t correct, but it should make the point. Assume you close in December, and the real estate taxes are due in January. You will not make enough payments to pay the real estate taxes, so the lender will “escrow” or “bank” some tax dollars at settlement so there’s a sufficient amount to cover the real estate taxes when they come due. A good rule of thumb is 12 months to cover the seller proration and lender tax escrow. One more point. If the seller did not pay the real estate taxes during his tenure, he will reimburse you. You can estimate the real estate tax proration in Pennsylvania with the link below. - Wed Nov 18 2009, 12:26