When u pay taxes on your purchased house,how is it prorated?If you plan on having the house for no more than 6 months,do you pay for the whole year,6 months,or monthly?And what about insurance?
Taxes are paid at the end of the year. The closing offer or title company will prorate the taxes at closing when you buy and sell.
Mortgage companies also escrow for taxes and insurance on most loans and you pay them monthly and they usually write a check once a year for the taxes and insurance.
If you are getting a new loan the mortgage company may make you set up an escrow account with 1 years insurance and 4 months tax payments or something like that. It has been years since I had to jump thru that hoop.
Any way hope this helps answer your questions a little
i dont mean in a conventional loan, i mean say u use a hml so to the seller your paying cash so do you have to pay taxes and insurance upfront? ;D
The taxes are due and payable at the end of the year. You will get credit at closing for the taxes the seller owes for the part of the year that they owned the property. You will have to pay these at the end of the year.
Insurance is another story with hard money lenders. Mine wants a one year builders risk policy paid in full.
The HML can also include this the the loan if you have a low enough LTV.
Hope this is what you are looking for
yes & thank u :