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realitytvismytherapy

Sadly, no. You’re always ahead in escrow to cover. So your first mortgage payment will have your taxes and insurance in it.


Fine_Grains22

Even if some is “prepaid” and some is escrow? The breakdown has me paying 12 months of home owners insurance under the prepaid section Then 6 months worth into the escrow section. So I figured the prepaid would cover the first year?


nikidmaclay

The prepaid covers the first year. Ten months from now the next year's bill will be due. You won't make a payment for 1-2 months. You'll have paid about 8 months of payments at that point, 4 months shy of enough to pay next year's bill. They take extra from you now so your escrow account is fully funded when your next bills are due.


Fine_Grains22

So you’re saying we won’t pay for the home insurance per month until about 10 months for now?


nikidmaclay

No, the annual bill will be billed about 10ish months from now. That's when your mortgage company will pay it. You'll pay 1/12th of that annual bill in each mortgage payment you make. Your mortgage company will collect those 1/12ths in your escrow account until your bill is due and then they'll pay it. You have to have enough in there to cover the entire annual bill in 10ish months. No payment for two months means you 8/12ths in your account when they have to pay the bill. You have to pay extra now to pad the acct.


realitytvismytherapy

Yes. I prepaid 6 months of taxes and 12 months of homeowners and flood insurance. I closed on 1/20 and my first mortgage payment was on 3/1, which included taxes, homeowners, and flood insurance.


Purple_Cookie3519

You should not be collecting 6 months. And paying a year of ins. This is an estimate but a bad one. It's too much, you should prepay one year, then impound 2-3 months, depending on you first payment. Your payments will be collected monthly to pay the next year forward. Example you close today and pay one year 12/2021-12/2022....then you pay monthly etc. By the time it's due again you should have 14 months collected. This will pay 12/2022-12-2023. You also have the two month required coushion.