Refinancing and property taxes - please help?

Question

So we just bought our house a year ago and I never realized you could have your property taxes paid thru your mortgage (my realtor never informed me of this or our lender) and so now along with a big house payment (our house cost $530,000) and plus we have to pay these huge property taxes twice a year, it's killing me!! So should we or can we refinance to include that cost? Also, can you put a car payment into a refinance (my friend said they knew of someone that did that). Thanks in advance!!

Answer 1

Oh boy, I don't know where you live, but it's crazy that your property taxes and home owner's insurance weren't wrapped into your mortgage. Money for those expenses are put in what is called an escrow account and paid out by the finance company when due. I don't know what your house is worth now, but if it has appreciated in value over the last year you have equity in the house. So, you could check around at mortgage lenders and ask them about a home equity line--it could be any amount depending on the equity you have. You could use that line to pay off our car, credit cards, etc., and make one payment to the bank. The home equity line rates are variable and are about 8 to 8.5 percent. If you refinance, you could ask about cashing out or something like that, where you would take the equity and pay for your car, credit cards or use to money to put in an investment. I don't know if your house has appreciated. I think the home loan rates are about 6 or 6.5 percent and you'd probably have to pay for an appraisal and there would be some closing costs, but these costs could be included in your new mortgage as well. Do some research to find "comparables" in your neighborhood--houses that have recently sold that are nearly identical to yours. That way you can gage the equity you have in your home--the price now compared to what you paid for it. You might want to look into an interest only loan if you refinance. Good luck. Start doing some research about home mortgages and home equity lines of credit so you can figure out if it something different would be beneficial to you. Talk to friends and colleagues and find out what kind of home mortgages they have and if they are satisfied, then pursue the best leads you get.

Answer 2

Yes, you can refinance to include the car and to collect escrows, but..

Most mortgage companies will let you add escrows without refinancing. They will collect 1/12 of what your expected annual bill will be each month and generally keep an additional two months in reserve. This is in case you miss payments or the bills increase significantly, they will still have collected enough to pay those bills on time.

Concerning the car. It is usually a bad idea to take a five year debt and now spread it over 30 years - you end up paying much more in interest over all. Unless the cash flow is very important now, consider only things like credit card debts (revolving) that already take years to pay off

Answer 3

You can always arrange with your mortgage company to put the real estate taxes into escrow.....however, they will generally require you to initially put in anywhere from 3-6 months worth of escrow (roughly your full year property tax costs divided by 12 months) payments.

When you do a cash out refinance, you can use the money for whatever you want, buy a car, go on vacation, etc. Since the loan is secured in your property, the interest is tax deductible.

Answer 4

Yes to both questions. You can refinance and set up what's called an escrow account...the mortgage company will add the monthly fraction of your taxes (and homeowner's insurance) and add it to your payment. When the taxes come due, the mortgage company pays them for you.

As to paying off the car, you can do it, but it will eat up any equity you have built up in your home. A basic question to ask yourself is if the interest rate on your car loan is lower or higher than your new mortgage?

Answer 5

You can refinance and pay off your auto, as long as your home is appraised enough to cover your payoff, and the auto. You can also include the property taxes & homeowners insurance into your payment if you choose to, or just the property tax. Give me a call, and I can help you.

Answer 6

But you have to let some equity build into the house first.You will have to have been in your house longer then a year to get any money out of it unless you have build up some equity into it. When you refinance you can add the insurance and taxes onto you house payment.

Answer 7

Call your lender to find out how to have them start escrowing for your taxes and insurance without refinancing. Yes, you can payoff your car in a refinance if you qualify...

Answer 8

You can get your insurance, property tax and house payment all in one. Its called Escrow, And I personal LOVE IT. I pay my payment and don't worry about anything else. I honsetly don't think you can put your car, but I'm not 100% sure.

Answer 9

In California, it would not. it is going to in case you redecorate with facilitates. In California the tax can only improve through a particular percentage each and every 3 hundred and sixty 5 days (and it does). verify on your state.