In most cases, anytime you have less than 30% equity in your home then lender will require the taxes and insurance to be included in your monthly payment...even though I agree it makes it much easier on the homeowner, the reality is, it's done this way to protect the lender...they have to be assured the taxes and insurance are paid since they have an interest in the property. If you put enough down they usually don't require an escrow account but will typically set one up for you. The laws set by the banks are usually because they are complying with the rules set up by FANNY MAE and FREDDIE MAC and not because of local customs. Good luck in your search for a good lender and let me know when you find one because we will be looking soon also.
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