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Kara
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They call me "Tater Salad"
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yet another taxes question - late may closing date - need to pay extra taxes?!
We are tentatively scheduled to close on our house at the end of May (pending a good engineer's report, etc.). If we pay taxes with our mortgage company, we have to put 4 months in escrow... But I also have a feeling that taxes are due at the end of May.
Will we have to put 4 months in escrow AND pay for the next 6 months of taxes when we close?!
Message edited 3/30/2007 8:52:02 AM.
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Posted 3/30/07 8:23 AM  |
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Kara
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Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Anyone? I think I'm starting to panic here.
If we have to pay 10 months of taxes up front, I'm not sure we can realistically afford closing costs without having to be really cash poor -- a situation I don't want to be in!
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| Posted 3/30/07 9:30 AM |
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anjerandunder
Positive thoughts worked!!!
Member since 6/06 1909 total posts
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J
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
i'm in your boat unfortunately. i have no idea what happens with taxes. hopefully someone can explain it to us!!!
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| Posted 3/30/07 10:07 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
I don't think you have to prepay the taxes like that. They want 4 months in escrow, but I think that they will then use that to pay your tax bill at the end of may, don't forget if you are doing it this way then they will still be charging you $$ for taxes each month.
You can also opt out of having the money in escrow, and pay the taxes yourself .
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| Posted 3/30/07 10:10 AM |
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Kara
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Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Right, if we opt out of escrow, we'd have to pay the 6 months up front then, right?
That's easier to swallow than 10 months! Our taxes are 9k!
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| Posted 3/30/07 10:17 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
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Baby Momma
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by SweetTooth
I don't think you have to prepay the taxes like that. They want 4 months in escrow, but I think that they will then use that to pay your tax bill at the end of may, don't forget if you are doing it this way then they will still be charging you $$ for taxes each month.
You can also opt out of having the money in escrow, and pay the taxes yourself .
yes but I think you have to have a certain $$$$ in escrow at all times that's why she may have to pay more at closing. Not sure though.
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| Posted 3/30/07 10:17 AM |
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Kara
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Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by SweetTooth
I don't think you have to prepay the taxes like that. They want 4 months in escrow, but I think that they will then use that to pay your tax bill at the end of may, don't forget if you are doing it this way then they will still be charging you $$ for taxes each month.
You can also opt out of having the money in escrow, and pay the taxes yourself .
Yes, but they are charging us taxes each month for our next tax bill. I don't think the mortgage company would actually front any money for our taxes.
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| Posted 3/30/07 10:18 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by Kara
Posted by SweetTooth
I don't think you have to prepay the taxes like that. They want 4 months in escrow, but I think that they will then use that to pay your tax bill at the end of may, don't forget if you are doing it this way then they will still be charging you $$ for taxes each month.
You can also opt out of having the money in escrow, and pay the taxes yourself .
Yes, but they are charging us taxes each month for our next tax bill. I don't think the mortgage company would actually front any money for our taxes.
Not sure. Just to let you know about closing costs as it seems that you are a bit concerned, always bring your check book to the table, this is what our lawyer told us, because there will always be extra fees. The more you have to take out in a mortgage, the more your NYS mortgage tax will be!! Ours was several thousand dollars!!!
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| Posted 3/30/07 10:22 AM |
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Kara
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Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Wait, what? I don't even see mortgage tax on my good faith estimate anywhere.
I'm panicking b/c I have a feeling closing costs will prevent us from being able to buy now. We could do it, but I will NOT risk being house poor.
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| Posted 3/30/07 10:24 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by Kara
Wait, what? I don't even see mortgage tax on my good faith estimate anywhere.
I'm panicking b/c I have a feeling closing costs will prevent us from being able to buy now. We could do it, but I will NOT risk being house poor.
it should be there! Like with everything, NYS taxes the hell out of you with this too! It's based on the amount of mortgage you are taking out! Who did your GFE?
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| Posted 3/30/07 10:29 AM |
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Kara
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Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
MortgageIT did our GFE.
Here are the categories on it (maybe the mortgage tax is called something else entirely?)
Appraisal Fee
Tax Servicing Fee
Underwriting Fee
Application Fee
Compensation to Broker
Prepaid Interest
Insurance escrow
Property tax escrow
Attorney Fee
Title Insurance Premium
Courier/Delivery Fee
Recording Fee
State Tax/Stamps
Survey Fee
Termite Inspection
Is the mortgage tax the state tax/stamps fee?!
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| Posted 3/30/07 10:32 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by Kara
MortgageIT did our GFE.
Here are the categories on it (maybe the mortgage tax is called something else entirely?)
Is the mortgage tax the state tax/stamps fee?!
yes!!!! it may also be based on county. Not sure. Search GFE on this site and a lot of info pops up based on purchase price of home and DP!!
Message edited 3/30/2007 10:35:13 AM.
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| Posted 3/30/07 10:33 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by Kara
MortgageIT did our GFE.
Here are the categories on it (maybe the mortgage tax is called something else entirely?)
Appraisal Fee
Tax Servicing Fee
Underwriting Fee
Application Fee
Compensation to Broker
Prepaid Interest
Insurance escrow
Property tax escrow
Attorney Fee
Title Insurance Premium
Courier/Delivery Fee
Recording Fee
State Tax/Stamps
Survey Fee
Termite Inspection
Is the mortgage tax the state tax/stamps fee?!
I think the mortgage tax is the recording fee.
I also see attorney fee - make sure it has both your attorney and the banks' attorney on there.
ETA:
Why does it have termite inspection, appraisal, and application fee?
We had the termite inspection with the engineer inspection and paid the appraisal and app. fee up front.
Message edited 3/30/2007 10:37:50 AM.
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| Posted 3/30/07 10:35 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
Posted by SweetTooth
Posted by Kara
ETA:
Why does it have termite inspection, appraisal, and application fee?
We had the termite inspection with the engineer inspection and paid the appraisal and app. fee up front.
ditto
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| Posted 3/30/07 10:38 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: yet another taxes question - late may closing date - need to pay extra taxes?!
We are paying that up front, too - I'm not worried about those.
Engineer does the termites, application fee and appraisal fee will be paid up front (it's in a different column, not the due at closing column).
Those I'm not worried about.
Thank you.
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| Posted 3/30/07 10:44 AM |
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