Principal, Interest Taxes and Insurance

Principal, Interest Taxes and Insurance

Can anybody tell me please what:

"tax and insurance is widrawn from escrow account automatically"

I have a seller who mentioned this to me, am interested in her property and she gave me the figures for the Principal and Interest but not the TI.



A portion of the mortgage payment is put into an escrow account to cover taxes and insurance when they are due. The mortgage company pays these bills from that account. Ask a RE agent what the taxes are on the property. Your insurance agent can tell you what your insurance premium would be.

Hope that helps, Al



Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.

Frank Outlaw


Al gave you some great advice. You may also inquire if there are any exceptions deductions for the property taxes that may not be applicable if you buy the property. Certain areas like my counties in the midwest have a list of qualifying deductions.

However, if you use a property a a rental you may not get the homestead deduction, mortgage deduction or if the seller has other deductions. Thus, the annual tax amount could increase. If you contact your county assessor or treasurer's office they could probably provide the specifics. Good luck. Believe and Achieve! Smiling - Joe


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