Other than the obvious (e.g. deductible, multi policy discounts, etc.). Proximity to fire department. Construction type. Amenities (e.g. swimming pool).
Construction type? What exactly is that? Is it true having things like swimming pools raise your rates?
Some insurance companies will give you a discount if you have all brick construction vs. all wood. Swimming pools will generally raise your rates. A burglar alarm may lower your rates. Your neighborhood could cause a higher rate depending on crime stats.
Proximity to fire dept. is just part of it. If it's professional fire department, you'll get a slightly cheaper rate than if the closest fire dept. is volunteer.
We called State Farm and Farm Bureau to get quotes and they both quoted the house at about $1200/year. Neither asked about a security system so I'm not sure if it would help or not.
I certainly don't miss the higher rates in Houston for Homeowner's policies. I just looked at my policy (State Farm) and my discounts are: Burglar Alarm Utility Rating, the newer your utilities (plumbing, electrical, heating/cooling) the better Multi policy Claim free My son recently moved and he had a more expensive premium because he was X number of miles from a fire department.
Yeah, there is a fire department less than 3 miles from our home. The home is only 4 years old so everything is fairly new. I'm guessing these are the best rates we'll get but we'll keep looking around. Thanks for your help. Sorry I can't rep you any more right now.
Another question about insurance. Is it routine that you have to pay a year in advance? One of the agents we spoke with told us that we would have to pay a year in advance, is that right?
If you're going to escrow, then you will pay it one month at a time as part of your mortgage payment. Not sure why they would want ANY payment up front if you're going to escrow.
That's what I am confused about. I know we pay it monthly as part of the mortgage payment but I have no idea why they are asking for a year in advance now.
Assume you move in on July 1. At closing you are paying insurance for 07/01/2009 - 06/30/2010. If you don't pay a monthly insurance fee into your escrow, what will they use to pay the amount due on 07/01/2010?
Yes, it is. Either you pay it up front or you put it in an escrow account--and the bank makes (more) money.
No. The escrow company will generally pay your taxes twice a year and your insurance once a year as well as your PMI (if applicable). I prefer to waive escrow and handle my payments myself.
So, we're going to have to pay our taxes and insurance a year in advance, am I reading that right? So along with our closing costs we're going to have to pay another $3000 up front? Our financing company said we couldn't waive escrow for whatever reason. What are some reasons you can't waive it?
If you escrow you will have to pay in a reserve for taxes, insurance and any HOA fees. In Texas you do not typically see a full year put into the reserve but not lenders are being more conservative so it does not seem unreasonable. Ask your lender how much they will charge to buy out of the escrow (or if that is a possibility for you).
