I’ve been in the mortgage or real estate business for 20 years and never knew this was possible. When buying a home if you have a 20% down payment you can pay your taxes and insurance yourself. However the mortgage company will usually charge you a one time upfront fee of .25%. For a $300,000 loan that is $750.

What I’ve recently learned is after making 12 payments you can request to have your escrow account refunded to you and pay your taxes and insurance yourself. So far I have not heard any mortgage companies charging to remove the escrow account but you should check with your own lender to be sure.

Paying your taxes and insurance isn’t for everyone but for people who can save the money instead of spending it there are advantages. Just make sure if you do this you are a saver and not a spender!

More information in this link and some of the advantages of not having an escrow account.

If you have any questions about selling or buying a home, call/text 512-791-7473 or send an email to eric@koparealestate.com.

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