Can I pay in advance???

**ACER9103** · 01-13-2009, 07:49 PM

Hi- Everyone I was wondering if I can pay my Mortgage insurance or Hazard Insurance for the first year up front at or before closing. I want to keep our mortgage as low as possible, because this is our first home, and want to know if they will allow us to pay the mortgage insurance or Hazard insurance at closing so that our mortgage will be lower?

Does anyone or has anyone ever done this?

**hotrealtyleads.org** · 01-13-2009, 08:10 PM

I'm not sure about your PMI but you should be able to pay your hazard insurance annually out outside of escrow. You should also be able to pay your property tax yourself, outside of escrow.

**hotrealtyleads.org** · 01-13-2009, 08:11 PM

The problem with this is that you need to budget for these expenses before they come do. That's why most people opt to pay them into escrow on a monthly basis. I hope this helps.

**ACER9103** · 01-13-2009, 08:33 PM

I understand, but we have budgeted ourselves. We can afford up to $1300 monthly. This is even with the estimate of the new payment for a second car that will be needed.With the amount of the home and interest and such our payment will fall along the line of $1,025-$1,080 so we still have room to manage. However I am coming into a a small lump sum of money, because I get reimbursed from my job the money I pay for tuition and want to know if I can opt to put it toward one of those usual escrow expenses. I am about to finish my degree and will be eligible for a raise once this happens so we will be okay, but why not have a lower mortgage if I can manage to have it?

Thank you, this does help. I wanted to see if we can cut our monthly costs.

**First Time Home Buyers** · 01-14-2009, 06:28 AM

Originally Posted by ACER9103

I am about to finish my degree and will be eligible for a raise once this happens so we will be okay...

Just make sure you don't start counting your paychecks before they come.

Unless you're a fortune teller and work in a tent at the carnival, just be careful about over-extending yourself.

**ACER9103** · 01-14-2009, 07:07 PM

very true, That is a good point. Not a good idea. Especially with the economy.

**Greg** · 01-15-2009, 05:59 AM

If your lender is collecting these fees as part of your mortgage payment and holding them in escrow you will have no choice but to make these payments as scheduled. The only way to stop the escrow payments is to put 20% down.

Before you pay for your insurance on your own make sure you will not end up paying twice. Your lender is the one to answer these questions.

**sellnow** · 01-18-2009, 06:47 AM

One other point. Make sure the lender will not raise your interest rate if you choose to not pay your property taxes within your mortgage payment. Lenders in Florida see this as a bigger risk. The reason is not they would be the junior lien because the tax man always comes first.