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Homeowners insurance included with mortgage payment questions?

Contributor

Homeowners insurance included with mortgage payment questions?

I'm looking to apply for an FHA loan in the very near future.Do lenders require that homeowners insurance and property taxes be included with the mortgage payments?If not,is it usually  inexpensive to take the homeowners insurance offered by the lender?



Starting Score: 553(EQ) 572 (TU) 586(EX) (EQ Complete Advantage)
Current Score: 572
Goal Score: 640


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Message 1 of 8
7 REPLIES
New Contributor

Re: Homeowners insurance included with mortgage payment questions?

I think all lenders will let you choose your own insurance provider.  Many require that these be bundled into your payment simply to ensure that you actually maintain them.  You wouldn't be able to maintain the property without keeping insurance and property taxes up to date.  It's much like a bank requiring you to maintain insurance on a car while you're making payments.

Message 2 of 8
Regular Contributor

Re: Homeowners insurance included with mortgage payment questions?

I got quotes from other places but the quote I got from my lender's preferred insurance company was much cheaper than the ones I got.
Message 3 of 8
Valued Member

Re: Homeowners insurance included with mortgage payment questions?

I had the same experience as JonRun. The builder/lenders preferred insurance company was more than $60 a month cheaper than any other option I could find. 

Current scores EX: 678 (lender pull), MyFICO TU: 696 & EQ: 664
Message 4 of 8
Valued Contributor

Re: Homeowners insurance included with mortgage payment questions?

My homeowner's insurance is $48 per month, $543 a year. The builder's lender informed me of their homeowner's insurance company that only insures new construction homes and that they were usually the cheapest. I got a quote from my company that insures the cars and they gave me a quote of $133 per month. I said no thanks to that. I have everything escrowed minus the HOA dues.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 5 of 8
Valued Contributor

Re: Homeowners insurance included with mortgage payment questions?

And my loan is FHA.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 6 of 8
Contributor

Re: Homeowners insurance included with mortgage payment questions?

Ok,thanks everyone!



Starting Score: 553(EQ) 572 (TU) 586(EX) (EQ Complete Advantage)
Current Score: 572
Goal Score: 640


Take the myFICO Fitness Challenge
Message 7 of 8
New Contributor

Re: Homeowners insurance included with mortgage payment questions?

My lenders insurance recommendation beat all the quotes I got by at least 200 a year. 

Lender Pull EQ 745 EX 734 TU 722
Message 8 of 8