Tax and Bond

[gerryann]

When purchasing homes in the past, my bank has always included the real estate tax on my monthly mortgage payment. Is this customary here in TV? Also, If it is done this way...is the bond also included monthly with a mortgage payment? Thanks for any info.

[Bill-n-Brillo]

You'd really have to talk to the specific bank you'd be considering dealing with to discuss the escrow account (for taxes and insurance) with them. Those kinds of things are usually considered on a case-by-case basis by most banks.

The bond amount is paid annually and shows up on your property tax bill. Again, whether or not the bank elects to collect an amount every month to hold in escrow for this is going to be at their discretion.

Bill :)

[jnieman]

We use Citizen's Wholesale mortgage and yes they do include it. That was something we had to set up with our loan officer before closing I believe.

[Sable99]

I am, hopefully, near the end of the mortgage process with Citizens First right now. I close on my new home a week from today!!! Both the taxes and bond are included in my mortgage payment.

[Trish Crocker]

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.

[buggyone]

...and don't forget the bond interest is not tax deductible.

[jimbo2012]

ok, why?

[gerryann]

Thanks so much for the info.

[Bill-n-Brillo]

...and don't forget the bond interest is not tax deductible.

ok, why?

jimbo, here's what I feel to be the best of the prior threads on the topic. Hopefully it will answer your question:

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/tax-deduction-bond-36461/

I was confused/unsure about it as well back then. The thread helped me get my head on straight about it.

Bill :)

[old moe]

alittle off subject, but could someone tell me anything about closing costs? Like what would I nornmally need to pay for as a buyer? in TV :shrug:

[jimbo2012]

I was quoted $7K

Closing $3,700
prepaids $3,200

[gerryann]

Wow, $7,000 sounds a bit high.....any other opinions?

[Skybo]

Wow, $7,000 sounds a bit high.....any other opinions?

It all depends on the the price of the home, the amount financed, the amount of the bond, the interest rate, who you finance with, when you close, etc. All closing figures are different depending on the individual cirumstances.

[old moe]

:shrug:Thank you all for the input.:bowdown: