Budgeting Category
How Much Should You Expect To Pay In Mortgage Closing Costs?
August 19th, 2010 categories: Adjustable Rate Mortgages, Budgeting, FHA Mortgages, Mortgage Guidelines, Mortgage Rates
How much does a mortgage cost? The answer depends on where you live. But no matter which your locale, chances are strong that you’ll pay more for a mortgage in 2010 as compared to 2009.
According to Bankrate.com and its annual Closing Cost Survey, a typical $200,000, purchase mortgage now carries an average $3,741 in closing costs — up nearly 37 percent from last year.
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What Does It Mean To Escrow Taxes And Insurance?
August 16th, 2010 categories: Budgeting
The fiscal responsibility of a homeowner — in Knoxville and everywhere else — extends beyond the mortgage’s basic principal and interest repayments. Homeowners are also responsible for the real estate taxes on the home and its insurance premiums, too.
Failure to pay taxes can lead to foreclosure, and failure to insure is breach of your mortgage contract.
As a homeowner, you have a choice about how you manage your real estate tax and insurance bills. You can choose to pay them from your own bank account when the bills come due, or you can choose to pay 1/12 of the annual bill to your mortgage servicer each month, and then let your servicer pay the bills on your behalf when they come due.
Not surprisingly, servicers prefer the latter method — it reduces two major lender risks:
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