topic Re: Prepaid Costs at closing and impact on first few payments? in Mortgage Loans

Prepaid Costs at closing and impact on first few payments?

EaglesFan2006 — Sun, 08 Jul 2018 13:37:50 GMT

Hello,

My lender wrote up a scenario for me which determined my monthly payments for PITI. The scenario included a lot of prepaid costs including taxes, insurance, etc as well as a PMI funding fee. I understand this is pretty standard. My question is, will these be deducted from my first few PITI payments since i'm 'prepaying' for 3 months of taxes and a year of insurance? So, would I just be paying Principal and Interest at first? Or am I paying the whole PITI from the get go....and if so, when would I 'make up' those prepaid costs?

Re: Prepaid Costs at closing and impact on first few payments?

EaglesFan2006 — Sun, 08 Jul 2018 13:48:14 GMT

Never mind I think I get it. Payments would include everything

Re: Prepaid Costs at closing and impact on first few payments?

CreditInspired — Sun, 08 Jul 2018 14:57:22 GMT

You’re right, PITI include everything in the monthly mortgage payment.

The prepaids you pay at closing for taxes and insurance goe into your escrow account.