Don't Forget the Extras
To Escrow or Not Escrow- That is the Question
After you have been preapproved by Hart Mortgage Services, you are then going to start looking at properties which could possibly be your future home.
When deciding on your future home you will want to be aware of the existing monthly or yearly payments that come with the house and whether or not you want your monthly mortgage payment to include your escrows.
What is Escrow?
Escrows are a monthly payment you will make, along with your principal and interest, to your lender as one payment. Your escrow amount can include your real estate taxes, homeowners insurance, flood insurance etc.
The lender holds your money in an "escrow account" until your yearly bill is due. The lender then sends the company a check on your behalf to pay the bill.
When Do I Have to Escrow?
If you are using a down payment of less than 20% you will be required to have your escrows included in your monthly mortgage payment.
If you use a down payment of 20% or more you will have the option to escrow or not.
What is included in Escrows?
Real Estate Taxes- This is a biggie and you can checkout your Florida Real Estate Taxes at www.leepa.org.
Home Owners Insurance- The newer the house the cheaper the insurance will be, usually. You are also able to obtain a wind mitigation inspection which will allow your insurance to be cheaper.
Flood Insurance- If you are in a flood zone you must have flood insurance
Condo Association Dues- Condo dues are a hot issue in the Florida real estate market with many condo associations raising their rates due to lack of funds.
Is that all!
We have listed the bigger items for you but it boils down to working with your Florida Realtor and a Hart Mortgage Services Florida Loan Officer to ensure that you know everything there is to know about the house you are going to buy so that you don't regret the decision in the future!
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