Home Owners Insurance

The only way that most lenders allow you to pay your own homeowners insurance premium and taxes yearly is if you put down 20% or more of the purchase price, and this is not on option on Government loans. Even then, they charge a fee for "allowing" you to do this. Usually .25% of the loan amount is the standard fee. Or, your interest rate could be a bit higher instead of paying the fee. I hope this helped and answered your question.

If you put 20% or more down, the lender will allow you to pay your own property taxes and insurance.. however most lenders will charge you a premium to do this in the form of a slightly higher interest rate or an added fee. However, if you are ever late on paying the taxes or insurance, then the lender will pay them to protect the asset *(the home) and will send you a bill and a letter stating they will no longer allow you to pay on your own and your taxes and insurance will be impounded.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

If your conventional loan is 80% loan-to-value or lower at the time the loan is originally done, then you can pay yourself. If over, you can not. If you've been in the existing loan more than 5-years, you can ask to stop escrowing taxes and insurance, and pay yourself. Other loans require you include it in the payment forever. Just depends. Call your lender.