we are trying to get a house...we have financing and we are curently looking, but my question is, when we get our tax returns each year (that we actually get one...lol) can we pay up a full years of taxes and insurance on our home, so that it makes our monthly payment lower for that year....(even if the taxes and insurance are paid through the note?)
2007-02-22 17:00:08 · 6 answers · asked by ashleyhaddon 3 in Business & Finance ➔ Renting & Real Estate
Sure, you can do that, but I wouldn't. Instead, take the money and put it in a CD or other investment vehicle. Then, when the taxes come due, it will be there.
2007-02-22 17:03:34 · answer #1 · answered by Terri J 7 · 0⤊ 0⤋
As a licensed insurance guy, I can answer that question. Yes you can. Most financial institutions who will finance your mortgage require a full year of insurance upfront anyway (which is why they make it part of the note). You don't have to have it as part of the note, although the difference in your monthly payment will be rather small if you pay upfront and keep the insurance out of the original loan. (Depending on where you live and the type and size of your home, your insurance should only be between $550 and $800 a year.Figure $10 a month for every thousand, so your monthly payment would only drop about seven or eight bucks. Best advise is shop around and get multiple insurance quotes). For the tax question, contact your local tax office. I've never met any level of government that will turn down your money.
2007-02-23 01:09:20 · answer #2 · answered by steven_p_ohio 3 · 0⤊ 0⤋
I have read through your answers you have received and I am confused.
I can tell you from experience that you can NOT pay taxes in advance unless they have been billed. You CAN pay the insurance, but your mortgage company will continually collect the money every month with your mortgage payments. It's in your contract with them.
So my best advice is to sock it away somewhere, yes, in a Certificate of Deposit (CD) for 6 months. The average savings account is now paying less than 1% interest. CD's are paying around 4%. Not much return for your money, but better than a kick in the butt (I guess).
Good that you're thinking in advance. Most people get it and spend it right away and it's gone.
Good Luck!
2007-02-23 07:24:04 · answer #3 · answered by Barbara 5 · 0⤊ 0⤋
I like Terry J's answer. Invest the money and save the interest on it, pull it out as needed, and keep your "seed" investment as much intact as possible.
Mortgage companies are like any other. Anything out of the ordinary just confuses the folks who handle the transactions and get all messed up. It can take a long time to straighten out some of those things.
If you still want to try it, try going about it from another angle. Contact both the real estate tax and school tax offices, and see whether they'll work with you to get it done that way. Please note that it's possible to have the tax offices and mortgage company not quite communicate properly and end up paying at both ends.
Life is strange.
2007-02-23 01:08:51 · answer #4 · answered by Peggy K 5 · 1⤊ 0⤋
Yes, you can pay your taxes and insurance separate from your monthly mortgage payment. It is your choice to have them included or not included in your monthly mortgage payment.
2007-02-23 01:04:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
income tax has absolutely nothing to do with property tax
2007-02-23 01:03:58 · answer #6 · answered by BajaRick 5 · 0⤊ 1⤋