Im shopping around to refinance my home and one of the options is a lender who says he will charge me $10,000. He says the 10k include them paying my property taxes. Should this be a good deal, or should I just pay my own property taxes and ask him to reduce my price instead (since i would pay for those taxes myself)?
2007-06-23 05:58:27 · 7 answers · asked by Peter_33 2 in Business & Finance ➔ Renting & Real Estate
The most important thing when shopping is to request for a copy of the good faith estimate showing a breakdown of fees. The ones that you want to be concerned about is the non-recurring fees such as appraisal, lender fees, origination, escrow, title etc., have them fax you a copy of this and then you can really shop. Be aware of brokers that charge more than 1 point, and I would stay away from a 3 yr pre-pay which is very restricting to do anything for 3 years. Outside of escrow and title fees you should only see appraisal, lender and processing fees unless you choose to buy down the rate with a point. If you have great credit (over 700) you do not need to pay any points.
In regards to your property taxes you are better off if you pay your own taxes for a variety of reasons including that you will not have to put a reserve up for those taxes which fluctuates month to month and you will not see that money again until you sell or refinance again. It is best to be in control of your property tax payments.
2007-06-23 06:09:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Are your property taxes calculated to be $10,000 or more or less? Unless this amount was figured into my escrow account to cover specific related charges, I would pass on this offer. Sounds to me like you are being bamboozeled into paying an additional expense unnecessarily. What if your taxes are lower, do you get a refund ... or if they are higher, will you have an additional bill to pay? Shop around for the best deal that suits your needs and make certain that you understand all the fine print.
2007-06-23 13:31:36 · answer #2 · answered by Sir Marksalot 3 · 0⤊ 0⤋
Continue shopping around. I've never heard of a $10K fee 'to pay your property taxes', other than in the conventional escrow arrangement, where a portion of your monthly payment goes to escrow and is set aside to handle your taxes at the end of the fiscal year.
This smells worse than a dead carp on the river bank.
2007-06-23 14:37:32 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
I agree with the other answers. I've refinanced twice, and never had this come up before. Property taxes are always escrowed anyway. This sounds like some sort of scam.
2007-06-23 13:39:27 · answer #4 · answered by psatm 3 · 0⤊ 0⤋
Check other lenders and pay taxes yourself. You do not want to pay interest on taxes. Check major lenders before giving in.
2007-06-23 13:05:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
pay your own taxes
2007-06-23 13:03:21 · answer #6 · answered by s b 3 · 0⤊ 0⤋
i wouldn't pay 10k
2007-06-23 13:02:14 · answer #7 · answered by cenarox7352@verizon.net 2 · 0⤊ 0⤋