Does tax and insurance money have to brought to the table at closing or can this money be incorporated?

Asked by Sonia, Guttenberg, NJ Sat Aug 15, 2009

into the morgage? Looking to buy somewhere in NJ, not too many options since I have only been pre approved for $175,000.00 was told I need a sellers concession and that all I had to have was my down payment and enough for the year of ins & taxes. Please advise if you have the answer to this question. Thanks

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Jeff Belonger’s answer
Jeff Belonger, , Cherry Hill, NJ
Sat Aug 15, 2009
PS... I forgot to mention... the taxes and homeowners insurance is included in your payment, no matter what.... unless you put 20% down or more on conventional loans only. This was actually a question that had two answers to it. And the fact that you have to pay monies for the escrows at closing.

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Jeff Belonger, , Cherry Hill, NJ
Sat Aug 15, 2009
Sonia.... did you ask your loan officer this question?

In regards to your question.... unless you put 20% or more down, only on conventional loans, you will need to escrow for your taxes and homeowners insurance. You have to pay for your homeowners insurance for 1 year upfront. But this can be brought to the closing table. How much did your loan officer put down on your good faith estimate? Even though taxes are escrowed every 3 months in New Jersey, that loan officer should put down 4. The reason being is because you will usually end up paying back the seller for some taxes that were paid already. I wrote about good faith estimates here.

The warnings about good faith estimates :…

And did your loan officer give you a good faith estimate? It doesn't seem like they went over it with you, because of the question that you asked. Please read :…

Overall, I would be glad to take a look at your good faith estimate. You just never know. Where you explained about the locking in process, because rates will go up some in my opinion. I can be always be reached by e-mail or that you can even call me this weekend from 11 am until 7 pm on my cell phone.


Jeffrey J. Belonger
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Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
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