0
What else can I help you with?
What does account impounding mean?
Account impounding is an accounting term used to describe an account that is maintained by a mortgage company. This account collects hazard insurance, property taxes, private mortgage insurance, and other required payments.
What type of account is held by the mortgage lender and used to cover property taxes and homeowner's insurance?
(Escrow:) funds held in an account to be used by the lender to pay for home insurance and property taxes. The funds may also be held by a third party until contractual conditions are met and then paid out.
Can a daughter who pays her parent's mortgage and property taxes claim the deductions on Sch A?
No, a daughter who pays her parent's mortgage and property taxes generally cannot claim those deductions on Schedule A. To claim mortgage interest and property tax deductions, the taxpayer must be the owner of the property or have a legal obligation to pay the mortgage. Since the daughter does not own the property, she is not eligible to claim these deductions, even if she is making the payments.
Is mortgage a fixed expense?
Yes, a mortgage is generally considered a fixed expense because it involves regular, predictable monthly payments that remain consistent over the life of the loan, assuming a fixed-rate mortgage. These payments typically cover both principal and interest, and can include property taxes and homeowner's insurance if they are escrowed. However, if you have an adjustable-rate mortgage, your payments may change over time, making it less predictable.
What can homeowners deduct on their taxes?
If you file a Schedule A and Form 1040 return you can deduct your Mortgage Interest, Property Taxes, and Mortgage PMI on your 1098 form from the bank or mortgage company.
Is private mortgage insurance the same as homeowners insurance?
They are not the same. Homeowner's insurance insures the property: dwelling, personal property, other structures on the property, etc. Private mortgage insurance pays the mortgage in case of the death or disability of the mortgagor.
What provides the funds needed for expenses such as property taxes homeowners insurance mortgage insurance?
Which of these provides the funds needed for expenses such as property taxes, homeowners insurance, mortgage insurance, etc.?
Do you have to carry private mortgage insurance on an investment property?
no
Will your be son be responsible for the mortgage on the property left to him in your will?
Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.Yes, unless you arrange for insurance to pay the mortgage in the event of your death. Your son would inherit the property subject to the mortgage. He would need to continue paying the mortgage or the bank will take possession of the property by foreclosure.
Does insurance pay house off after house destroyed by fire?
It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.It does if the policy is current and there is adequate coverage. If the property is underinsured the insurance company will not pay for the entire loss. That all relates to the homeowner's insurance.If the mortgage is greater than the value of the property then you will owe the balance after the homeowner's insurance payment unless you have mortgage insurance.
Who pays your mortgage if you dies?
If you have an outstanding mortgage on your property at the time of your death the lender will take the property if the mortgage isn't paid. You can purchase some type of mortgage insurance or life insurance to pay off the mortgage in the event of your death. Otherwise, your heirs will need to pay it if they want to keep the property.
Why didn't the mortgage company pay the insurance?
The mortgage company didn't pay the insurance because the homeowner is typically responsible for maintaining their own insurance coverage on the property.
If you have mortgage are you required to have homeowner's insurance?
Yes, if you have a mortgage, you are typically required to have homeowner's insurance. Lenders require this insurance to protect their investment in the property, ensuring that they can recover funds in case of damage or loss. Homeowner's insurance not only safeguards the property but also provides liability coverage, making it a crucial component of homeownership with a mortgage.
What provides the funds needed for expenses such as property taxes homeowners insurance and mortgage insurance?
Escrow account
What is a mortgage escrow account?
An escrow account associated with a mortgage is an account that is maintained by the mortgage holder and funded by the mortgagee. Part of the monthly mortgage payment goes into this escrow account to pay for property insurance and property taxes.
What is mortgage insurance?
Private Mortgage Insurance is a policy that covers the mortgage company in the event the home buyer defaults on the mortgage note. It is commonly referred to as "MI" and is usually obtained through the mortgage company. Mortgage Insurance does not cover the real property but rather the Mortgage Note. It comes under the category of Contract Performance Insurance and is in the Property and Casualty line. The term "private mortgage insurance" differentiates it from government insurance. Loan products such as FHA, VA and USDA Rural Housing loans also carry insurance but it is from the government and is built into the cost of the loan, rather than being purchased seperately.Answer:It is insurance that the lender forces you to buy if you do not have enough equity in the property (usually 20%). The insurance only protects the lender in the event the borrower defaults and the foreclosure sale does not bring enough to pay off the loan.
What is hazard insurance and why is it required on a mortgage?
Hazard insurance is a type of insurance that protects a homeowner against damage to their property caused by specific hazards like fire, storms, or theft. It is required on a mortgage to protect the lender's investment in case the property is damaged or destroyed.
