Question to Real Estate experts on CD.

I am buying a house with 10% down and the lender who is financing my house is also collecting property taxes monthly with payments, the lender will pay taxes on my behalf. When i questioned, i was told that this is normal in a high risk mortgage.

Is that normal? any comments from CD experts?

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4z4z

Yes it is. Nothing to worry about.

You can if you wish opt to pay taxes on your own o/w the lender is benefiting of your free money.

I have several clients who pay the taxes on their own, but many opt to go thru the lender as they may not be able to ante up the $2000 + tax in one shot.

Why is the question directed to real estate experts? I am not one, but I do deal in mortgages.

Actually most mortgages high-risk or otherwise have this. I've had a few mortgages and all of them have had this sytem included. And I actually prefer it.

BV

thanks for clearing this up.

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4z4z

Quote:

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Originally posted by investpro


I have several clients who pay the taxes on their own, but many opt to go thru the lender as they may not be able to ante up the $2000 + tax in one shot.

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Quote:

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Originally posted by Big Vee
Actually most mortgages high-risk or otherwise have this. I've had a few mortgages and all of them have had this sytem included. And I actually prefer it.BV

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

property tax is not rolled into mortgage.

I am paying monthly + (Property Tax/12).

lender takes the property tax and put it in an escrow account and then pays it whenever they like, i would assume they would pay every year.

But the point is that it is free money to lender.

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4z4z