Taxes in Escrow

[Nikke]

What is the name of your state?What is the name of your state? Illniois

Is anyone aware of if you only put down 10% that you are required to escrow your Real estate taxes rather than opting out and paying them yourself?

[HomeGuru]

Originally Posted by Nikke

What is the name of your state?What is the name of your state? Illniois

Is anyone aware of if you only put down 10% that you are required to escrow your Real estate taxes rather than opting out and paying them yourself?

**A: if you are the Buyer, both the mortgage company and escrow require escrow to pay the taxes to insure clear title at closing. If you are asking about escrowing taxes during the term of the mortgage, the lender has the final say.

[Samm1970]

It depends. If you did an 80/10/10 which is an 80% 1st conventional mortgage, 10% 2nd mortgage and 10% down payment then you are not required to escrow. If you took a 90% 1st mortgage then you are required to escrowed.

[Ciarraine]

Originally Posted by HomeGuru

**A: if you are the Buyer, both the mortgage company and escrow require escrow to pay the taxes to insure clear title at closing. If you are asking about escrowing taxes during the term of the mortgage, the lender has the final say.

All I'd add is that you should discuss that with your loan officer. Because waiving escrows results in less security for the lender, there's often a rate change or points if you don't impound property taxes and insurance.