Question: In the state of Florida, Miami Dade County, do I have a choice before closing to decide whether I

Asked by Juan L Marquez, Miami, FL Sun Aug 17, 2008

will pay my property taxes and homeowners insurance along with my mortage or can I decide to pay both separate from my mortage payments?
J. Marquez

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Myke Atwater, Agent, Santa Rosa Beach, FL
Mon Aug 18, 2008
Your lender is the one that will decide how the taxes and insurance will be handled, and considering more than one lending institution will help you to know if you have to do this--for most of them, as the previous answer pointed out, that will probably be determined by the banks policies in regards to the risk they are taking (percentage of debt on the property depending on down payment). If it is 100% financing, they would probably require it be escrowed. However, in terms of the closing, it is a requirement that your taxes and insurance (prepaids on your closing cost sheet) be paid in advance for the year. Talk to your lender--they are the best source of information in this situation.
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Andre Shambl…, Agent, Miami, FL
Sun Aug 17, 2008
Generally if your loan to value is more than 80% you will be required to escrow for your taxes and insurance. This would depend upon your lender. If an escrow waiver is available the lender can charge up to 1% of the loan amount. Whether you escrow or not you are required a full years paid premium for both hazard insurance and flood insurance ( if your property is determined by FEMA to be located in a flood zone). For more information please feel free to give me a call 305-788-6643

-Andre Shambley
Miami's Best Realtor
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Sun Aug 17, 2008
That depends on your lender. It is not required by law to impound a monthly percentage of insurance and taxes. However, it may be a lenders requirement in order to ensure that there are funds to pay when invoiced. A lender will always pay the taxes in the event of borrower default or neglect. The cost are very high to cure a past due tax lien.
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Amit Bhuta, Agent, Coral Gables, FL
Sun Aug 17, 2008
Good morning. In the past many banks would allow borrowers to not have to escrow their taxes and home owner's insurance. Because of all the foreclosures and problems in the mortgage industry from past due loans, many banks are requiring the borrowers to escrow their home owner's insurance and taxes within their mortgage payment. Their are still loans that allow the borrower to not escrow or pay separately the taxes and insurance. The bottom line is that it just depends on the loan you are appying for and credit rating.
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Louise Warri…, , Lake Mary, FL
Sun Aug 17, 2008
Hi Marquez -- That really depends on what your mortgage company will allow. If you wish to not have those amounts escrowed from your monthly payment, you should speak to your mortgage lender prior to the closing.

Happy House Hunting.

Louise Warring
Coldwell Banker Residential Real Estate
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