In New York are taxes paid from mortgage payments?
by Mortgage Rates on Monday, November 8th, 2010 | 5 Comments
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It looks like you may be escrowing for taxes and insurance, but most mortgages except for government backed ones do not require escrow. There are two ways to be sure. 1) Review your closing docs to see if money was set aside for this as “reserves” and 2) probably the easiest is to call your lender. Their toll free number should be on your monthly statement and just to be sure have them send or fax you a copy of your escrow account if they say you have one. Good luck.
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You need to check what your ‘mortgage payments’ are covering. If there is, indeed, a tax escrow account, then part of what you paid monthly is reserved for paying the property tax. Bear in mind, however, that no escrow is guaranteed to cover the property taxes. It’s merely a monthly deposit which is held by the lender to pay the tax. If the escrow amount falls short, you ARE responsible for any shortfall.
It depends on how your original mortgage was set up. Since your last fall taxes were paid, your next ones probably will be too. Check your mortgage paperwork and see if “escrow” was collected or check your monthly mortgage bill/coupon and it should give you a breakdown of your payment; how much goes to principal, how much to interest and, if your taxes and/or insurance are paid by the mortgage company, how much goes to escrow.
I sounds like you’re dealing with two seperate questions here:
1) are tax payments made monthly from my mortgage
2) are my taxes paid at closing
for #1
Depends on the type of loan you had. Some loans pay taxes from each payment (escrowed) and some are set up so that you pay your taxes each quarter or each year (not escrowed). You would have to consult your original loan document for that info>
for #2
If you closed on Aug 07, all taxes should already have been settled at closing. In some states , at closing, the taxes are paid by the buyer, and in others by the seller. In some cases, they are paid by both.
Normally,what occurs (in a nutshell) is , at closing, the buyer is paid (on a prorated basis) from your seller proceeds for up coming taxes (which are normally billed for the year already past.) This shows on the closing statement as a “credit to buyer” (in the tax section.) The following tax year, the new owner is responsible for paying all taxes due.
Also, at closing, any taxes you owed as of closed are debited to you.
Since you closed in August, I would assume you have kept a copy of your closing statement?
I would consult your closing statement and then contact your real-estate person (realtor, broker, salesperson) to clarify (on your closing statement) whether all taxes were settled correctly at closing. If not all taxes were collected (from an escrow account at closing) then you may have to pay current billed taxes.
contact your bank and see what provisions you have signed for never assume anything also if you are paying your taxes through your mortgage you are not getting interest on that money i changed mine so the same amount for the taxes was going into a GIC that i had access to it even though the interest is only 4% its better me than the bank getting it