LA Lending

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 - Tue Jul 1 2008, 11:39

You should be able to contact the local Sheriff's office or State Trooper office and request information about the crime rate in that area. Also, drive around the subdivision during different peak hours and speak with some of the residents already living there. If they love their neighborhood -- they will gladly share information with you about it.

If you haven't already been pre-approved for a mortgage, I would love to help!
Chasity Marshall
LA Lending
225.926.5408 - Thu Jun 26 2008, 10:55

First, I would contact the office that sets property taxes for your area. Are they aware of the decrease in your home value? Your property taxes should be directly related to the value of your home -- if your home value has really decreased you might be able to request a re-evaluation of the property taxes, or sign up for a homestead exemption / tax relief program that you might not be aware of.

Your mortgage company will not return any downpayment that was made during the purchase of the home. The only way to access equity is to cash out refinance or secure a line of credit on the property -- but both transactions would be based on the current value of the home (not the value when you purchased). - Wed Jun 25 2008, 12:49

Rural Development loans (RD loans) are dictated by the local rural development office. You might want to contact them directly and ask if funds are still available for your area. http://www.rurdev.usda.gov/la/offices.htm

Otherwise, the only way of avoiding PMI at this time is to secure a VA loan -- which is only available to military personnel.

I know common rule of thumb is to try and avoid PMI - but as of 2007 it became tax deductible (just like home loan interest) and can often help out during income tax time. - Wed Jun 25 2008, 12:36

Hi Daniel-
I'm a mortgage broker and I can confirm what Don answered earlier. Depending on your circumstances, mortgage companies can beat your local bank on interest rate, options and fees - it's just important to choose the right mortgage broker!

As a mortgage broker, it is my job to specialize in real estate transactions. A bank offers a wide variety of products, and often cannot offer you the service and expertise you should have when making such a large decision.

I would love to compare what your local bank can offer you. Please visit my website for more information.
Chasity Marshall - Tue Jun 17 2008, 21:05