if your home becomes temporarily unlivable.
Unless you are putting down a very large down payment, you will be required to escrow taxes and insurance with your mortgage payment so the lender can ensure when the bills come due that they are paid on time. For your homeowner's insurance, you will pay the 1st year premium up from and then 1/12 of each payment will be paid each month with your mortgage payment so by the time the next bill comes due there will be sufficient funds in the lender escrow account to pay the bill. Essentially, an escrow is a savings account designed to help you pay your mortgage, property taxes, and even homeowner’s insurance in smaller, periodic installments however you will not receive interest on those funds held by your lender.
A HOME WARRANTY MAY LET YOU SLEEP BETTER AT NIGHT
Whether you’re a first-time homebuyer or have purchased several homes in the past, it might be a smart idea to have a home warranty plan, so you can sleep better at night. The advice also applies to experienced real estate owners who just don’t want to have the thought of maintenance and repairs hanging over their heads. A home warranty is a way of protecting yourself from expensive, unexpected repair bills. Depending on the local market, the home warranty can be paid either by the seller or by the buyer. A home warranty paid for by the seller can be a negotiation point or inducement offering to protect the buyer from having to do any additional, expensive repairs to the house after the deal is closed.
The cost of a home warranty is generally not too high, often
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