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Home loan.

My husband went to a bank to ask about home loans and such.... they said that now they will put the taxes and insurance cost into the monthly mortage payment........ when doing this, do we pick the insurance, or do they ?

* my husband failed to ask them this *

Answer Question

Asked by Anonymous at 10:41 PM on Apr. 15, 2011 in Money & Work

Answers (6)
  • Are they talking about PMI insurance or homeowners insurance?

    When we did ours, the found it but told us we could find a different one if we wanted.

    Answer by Mel_in_PHX at 10:49 PM on Apr. 15, 2011

  • depends on the insurance regualr home owners insurance you pick, if its mortgage insurance which all FHA loans have and many many conventional loans have, they pick, find out your LTV Loan-To-Value ratio that will help answer alot of questions.

    Answer by DallasMomVicki at 10:52 PM on Apr. 15, 2011

  • If they are talking about an escrow account (where money is collected monthly to pay for your home owners insurance and property taxes) then you do get to pick who has your home owners insurance. Keep in mind with an escrow account your monthly house payment will go up yearly to cover the raise in cost on your property taxes and home owners insurance (or it can go down if those prices go down). Also if you have a shortage (the difference in last years cost of ins/taxes and this years cost is large) then the amount of the shortage will be added on your yearly and monthly cost. We have an escrow account and our monthly home payment has gone up about $10 a month once a year when it's review time. (Our review time is in November so every Nov the payment go up $10 per month until the next review). If they are talking about the PMI then NO you don't get to choose.

    Answer by SAHMinIL2 at 10:59 PM on Apr. 15, 2011

  • SAHM has a really good answer. You pick, but they will manage payment for you. Your prop tax bill will be sent directly to the mortgage company.

    It is actually very convenient to have that escrow account taking care of all of those payments . . .

    Answer by ImaginationMama at 11:05 PM on Apr. 15, 2011

  • Have him call back and talk to the person he met with to clarify this. GL!

    Answer by elizabr at 9:40 AM on Apr. 16, 2011

  • We picked our insurance company.

    Answer by kc932 at 2:00 PM on Apr. 16, 2011

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