How are taxes paid? Lump sum at the end of the year or through payments every month? Also, what types of insurance does a $150K condo need? Any ideas what this would cost?
Quote:
On 2004-12-29 16:33, Fishbowl1 wrote:
How are taxes paid? Lump sum at the end of the year or through payments every month? Also, what types of insurance does a $150K condo need? Any ideas what this would cost?
I have mine built into the mortgage. You may be able to pay every year or 6 months also.
Insurance isn't much at all. Probably about $200 a year.
Figure out what type of loan you are getting and the purchase price, yearly tax amount, and you can pretty much figure exactly what you are gonig to pay a month.
Insurance around the country is different... $200 a year - I would die for that!! I am paying over $1,000 on insurance on some of my rental properties...
Just keep that in mind...
On a condo you are going to have homeowner associatin fees. This fee will include insurance on the exterior of the building. The reason why insurance to cover the interior of the building is so inexpensive is because the homeowner assocation is paying for a decent chunk of of the liability.
And there is piti+i Mortgage Insurance in cases where you pay pmi(many 81%+ conv loans) or mip(fha loans).
You need to find the specific details of taxes per property. County City/Town LocalityType Other? And know that they will go up sooner than later. And when are they due? Pay in escrow or self?
Insurance...owner occupied or rental. Condo or Not?
City? Rural? Distance from fire dept? hydrant?
How old is the roof? A/C? etc etc This is where a top notch home inspection is worth its cost ...planning for future costs.
Mortgage insurance is specific to your loan, you, your location. There are several ways not to pay mip, including having it built into the loan w/a higher rate, going 80% loan or combining 2 loans(80/15/5 ex.).
Escrows: In my experience lenders want to escrow both taxes and insurance. If so, they will compute annually what your costs will be and add a cushion and add 1/12 of that amount to your mortgage pymnt. It is just like budgeting for anything that has an annual or semi-annual bill. When you are a novice, this is the way to go til you see how it works. It is important that you become knowledgeable of the process: bills, tax assessments, insurance, and escrow process.
Much of this is clearer when you are experiencing it.
Does anyone know anything about a Homestead Exemption in regards to property taxes? I don't know if it's a national or state (GA) exemption. Does this keep you from paying prop taxes?
Costs as a landlord or costs in a normal mortgage with your primary home?
I was referring to a primary residence.
However, If you happen to know the extra costs associated with a rental property I'd appreciate you listing those as well.
Thank You.
Remember "PITI". Principle, Interest, Taxes, and Insurance.
Then your gas, electric, water bill, association fees. Maybe an unexpected cost like broker water heater, etc.
How are taxes paid? Lump sum at the end of the year or through payments every month? Also, what types of insurance does a $150K condo need? Any ideas what this would cost?
Quote:
On 2004-12-29 16:33, Fishbowl1 wrote:
How are taxes paid? Lump sum at the end of the year or through payments every month? Also, what types of insurance does a $150K condo need? Any ideas what this would cost?
I have mine built into the mortgage. You may be able to pay every year or 6 months also.
Insurance isn't much at all. Probably about $200 a year.
Figure out what type of loan you are getting and the purchase price, yearly tax amount, and you can pretty much figure exactly what you are gonig to pay a month.
Insurance around the country is different... $200 a year - I would die for that!! I am paying over $1,000 on insurance on some of my rental properties...
Just keep that in mind...
Good Luck!
[addsig]
On a condo you are going to have homeowner associatin fees. This fee will include insurance on the exterior of the building. The reason why insurance to cover the interior of the building is so inexpensive is because the homeowner assocation is paying for a decent chunk of of the liability.
How do you build your taxes into the loan? Is this only done for the first year?
Quote:
On 2004-12-29 18:10, Fishbowl1 wrote:
How do you build your taxes into the loan? Is this only done for the first year?
You can just ask for it to be built into the mortgage. Recommended.
Damn Mattfish, your up there!
And there is piti+i Mortgage Insurance in cases where you pay pmi(many 81%+ conv loans) or mip(fha loans).
You need to find the specific details of taxes per property. County City/Town LocalityType Other? And know that they will go up sooner than later. And when are they due? Pay in escrow or self?
Insurance...owner occupied or rental. Condo or Not?
City? Rural? Distance from fire dept? hydrant?
How old is the roof? A/C? etc etc This is where a top notch home inspection is worth its cost ...planning for future costs.
Utilities? Who/what/where? Water? Trash?
This ownership stuff is an endless education! :-D
any ideas what mortgage insurance might cost on a $150K condo?
also, what does it mean to pay taxes escrow as opposed to self?
thanks.
Mortgage Insurance depends on the lender, risk profile etc. But you can expect anywhere from 40 to 60 dollars a month on MI
Mortgage insurance is specific to your loan, you, your location. There are several ways not to pay mip, including having it built into the loan w/a higher rate, going 80% loan or combining 2 loans(80/15/5 ex.).
Escrows: In my experience lenders want to escrow both taxes and insurance. If so, they will compute annually what your costs will be and add a cushion and add 1/12 of that amount to your mortgage pymnt. It is just like budgeting for anything that has an annual or semi-annual bill. When you are a novice, this is the way to go til you see how it works. It is important that you become knowledgeable of the process: bills, tax assessments, insurance, and escrow process.
Much of this is clearer when you are experiencing it.
Does anyone know anything about a Homestead Exemption in regards to property taxes? I don't know if it's a national or state (GA) exemption. Does this keep you from paying prop taxes?