Posted on: 18th Jun, 2012 12:14 am
So, we’re buying the house much sooner that we had intended to due to certain issues. So, I need to know how much I need to put in the escrow. And how much will the inspection cost?
Hi Maggyiiee,
As far as I know, in the escrow account, you will have to put down 1/12 of a homeowners insurance policy premium and 1/12 of property taxes.
Thanks
As far as I know, in the escrow account, you will have to put down 1/12 of a homeowners insurance policy premium and 1/12 of property taxes.
Thanks
Hi Maggyiiee!
Welcome to forums!
James is right regarding his calculation of the amount which you will have to put in the escrow account. The inspection cost may vary. You can contact your lender and he will let you know in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
James is right regarding his calculation of the amount which you will have to put in the escrow account. The inspection cost may vary. You can contact your lender and he will let you know in this regard.
Feel free to ask if you've further queries.
Sussane
Although your question is a bit vague so are the answers so far. Actually fairly inaccurate.
If by 'escrow' you mean earnest money, it's what the seller will accept. Around here it's typically $1,000.
If by 'escrow' you mean 'funds to close', get a GFE (good faith estimate) from a local broker.
If what everyone has guessed so far is correct and you mean the amount to be placed in your initial escrow account, the answer is zero (with an escrow waiver) or the amount determined by RESPA, the governing law. RESPA forced everyone into the aggregate method as opposed to individual accounts and this method does produce lower amount. Google 'aggregate escrow analysis.' The calculation is simple and probably the Q&A HUD site is the easiest. Total amount will vary by the closing month relative to the months the various bills are to be paid. Use of the two-month cushion is almost universal so I'd include it. Again, a loan officer can quickly guide you through the calculations or supply you with an Excel sheet if you don't want to run the number yourself.
If by 'escrow' you mean earnest money, it's what the seller will accept. Around here it's typically $1,000.
If by 'escrow' you mean 'funds to close', get a GFE (good faith estimate) from a local broker.
If what everyone has guessed so far is correct and you mean the amount to be placed in your initial escrow account, the answer is zero (with an escrow waiver) or the amount determined by RESPA, the governing law. RESPA forced everyone into the aggregate method as opposed to individual accounts and this method does produce lower amount. Google 'aggregate escrow analysis.' The calculation is simple and probably the Q&A HUD site is the easiest. Total amount will vary by the closing month relative to the months the various bills are to be paid. Use of the two-month cushion is almost universal so I'd include it. Again, a loan officer can quickly guide you through the calculations or supply you with an Excel sheet if you don't want to run the number yourself.