Are taxes and insurance included in mortgage payments for condos?

Asked by Jo Ann Ream, College Station, TX Mon May 14, 2012

If so, is there a way to estimate the additional amount to the payment?

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Don Groff, Agent, Austin, TX
Mon May 14, 2012
That depends on the type of loan. Some loans you can choose to escrow or not to escrow and some loans you are required to escrow due to the type or loan value.

You want to break them down separately into your Principal and Interest payment and then your Taxes and Insurance. For a condo you have the monthly maintenance/association fees as well.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157 |
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Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Mon May 14, 2012
If you aren't using a conventional mortgage with 20% down, you can expect to have insurance, taxes and any PMI included in your escrow account. Also I have recently seen lenders requiring the contents insurance to be escrowed. You'd need to check with your lender on that.
Good luck!
Barbara Heath Coker
NMLS# 228545 Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
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Joshua Leret…, Mortgage Broker Or Lender, Lakeland, FL
Mon May 14, 2012
Hello Jo Ann,

It all depends on the loan program you ultimately go with. Taxes on all FHA/VA/USDA (basically any government) loans have to be included in your monthly payment. Conventional or Fannie Mae/Freddie Mac type of loans do not require that you escrow but if you are putting down less than 20% you most likely will have to include them as well. As many have already said, your insurance is included in your HOA fees but more often than not, you will have to get your own HO-6 policy which covers interior content. Hope this answer helps. I am a licensed loan office in the State of Texas and would be happy to assist you with any other questions you may have regarding financing or your home loan. Feel free to contact me at any time.
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Annette Levi…, , New York, NY
Mon May 14, 2012
If you are getting PMI (putting less then 20% down) then a tax escrow is required. We calculate the tax escrow by taking 120% of the current tax on the unit and dividing by 12. This allows for an increase in tax.
Some lenders require a homeowners' insurance escrow and some don't. In your HOA fees you are paying for insurance to cover the rebuilding of the unit, but it does not give coverage for any items in the unit. This means your kitchen is not covered.
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Jody Luckie, Agent, Bryan, TX
Mon May 14, 2012
If you set it up that way, most of time the lender will require you to set it up that way. A good estimate on insurance would be $50 per month and you can look up what last year's taxes were at and divide that by 12 for your monthly tax payment.
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Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Mon May 14, 2012
HOA fees cover insurance. Taxes can be added to loan pmt thru escrow account.

Look at your local 'County Appraisal District' website. You can look up taxes on individual properties.
Or... just ask a local realtor/lender to look up the tax rates where you are looking to buy.

Tom Burris
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Warren Green, Agent, College Station, TX
Mon May 14, 2012
often times your insurance is included in your HOA dues, but you would be responsible for taxes. If it was included in your mortgage would be based on if you chose to escrow your taxes or not, but if you are putting 20% down that would be a choice your mortgage company gave you

Warren Green
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Tim Moore, Agent, Kitty Hawk, NC
Mon May 14, 2012
Taxes could be, but insurance likely is not because the condo will provide insurance for the building and you will just have renters insurance on the inside contents only. With condos you have to look at the condo documents because anything is possible and the only way to know is to read the documents.
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