We want to get an idea of what exactly we are looking at as far as are monthly payments. We know we have to pay homeowners insurance but we don’t know how much it is for Los Angeles and also any taxes. Our estimated mortgage payment will be $1,300. We want to know what we are getting into before we buy our house
It depends on where you live in LA, home insurance can vary greatly depending on location (fire / flood hazard areas, etc), the age of the home, what the home is built of, the type of roofing, the amount and type of coverage you buy, if you buy coverage for art, jewelery, do you have a pool, playground equipment or big dog, etc.
Also, it might be difficult to find regular insurance for some homes. I have a home built in 1928, in LA, no problems through earthquakes, anything, but I had to really look and make a zillion calls to get good insurance. My neighbor with a similar home pays more for a really crappy policy from a low end insurer. Apparently the agents can only take a certain number of old homes. So if one says no, call another.
Same with homes in fire or flood areas. I have a home in unincorporated LA County and it’s considered in a fire area so I had to have CA FAIR Plan fire only insurance and another policy (wrap around) from a regular insurance company for theft, liability, etc, until I could find an agent who had an open slot for a home in a fire area. Also, if you want earthquake insurance, it is separate from fire insurance. Usually because the way the large deductible works (it’s very confusing!), you’d need to have major damage for it to pay off. But that’s why I have it on all my properties, in case of major damage. I figure if I’m covered, nothing is happening. (That’s why I have life insurance, too. lol)
You can ask the realtor to ask the home seller, but you may not be able to get the same insurance (so their insurance may be cheaper than you will be able to get), or they may have had claims and that really can make your insurance go up. You can call insurance companies to give you an idea, or ask the realtor to. Start with the major companies like State Farm or Allstate, to get an idea, be careful with Mercury, they seem to have less coverage for more cost. If you have good auto insurance, see if you can get a discount if they cover your home, too.
For real estate tax, expect about 1.2% yearly of the sales price / value of the home. It might go up a bit every year if they increase the value of the home, or they add new taxes. It depends on how you pay it when it is due, the mortgage lender may require you to put your tax and insurance payments monthly into an escrow account. I’ve always paid apart from my mortgages, so my tax is due half in November/December and half in February/April.
http://www.homeloanlearningcenter.com/MortgageBasics/WhatsinaMortgagePayment.htm
Did they tell you about PMI, private mortgage insurance, if you don’t put down 20%?
http://www.frbsf.org/publications/consumer/pmi.html
If you’re going to live in the home, file for Homestead Protection. It also gives you a little bit off on your property taxes. It’s easy to file yourself.
http://dca.lacounty.gov/TSHomestead.html
http://www.lacountypropertytax.com/portal/list/faq.aspx?faqID=58
Good luck!
Ask your real estate agent to consult the MLS listing for this house.
OR Look on the county or city assessors website for that address to find out what the taxes are. If it is not on the website you may have to call.
If you already started the loan process, you should have received a "good faith estimate", or RESPA form within a couple of days after talking to the loan officer.
The estimated taxes will be itemized on that form.
Your insurance carrier can estimate your premiums.
References :
Realtor, homeowner in OC
You can easily check your quotes in internet, for example here – homeinsurance.awardspace.us
References :
It depends on where you live in LA, home insurance can vary greatly depending on location (fire / flood hazard areas, etc), the age of the home, what the home is built of, the type of roofing, the amount and type of coverage you buy, if you buy coverage for art, jewelery, do you have a pool, playground equipment or big dog, etc.
Also, it might be difficult to find regular insurance for some homes. I have a home built in 1928, in LA, no problems through earthquakes, anything, but I had to really look and make a zillion calls to get good insurance. My neighbor with a similar home pays more for a really crappy policy from a low end insurer. Apparently the agents can only take a certain number of old homes. So if one says no, call another.
Same with homes in fire or flood areas. I have a home in unincorporated LA County and it’s considered in a fire area so I had to have CA FAIR Plan fire only insurance and another policy (wrap around) from a regular insurance company for theft, liability, etc, until I could find an agent who had an open slot for a home in a fire area. Also, if you want earthquake insurance, it is separate from fire insurance. Usually because the way the large deductible works (it’s very confusing!), you’d need to have major damage for it to pay off. But that’s why I have it on all my properties, in case of major damage. I figure if I’m covered, nothing is happening. (That’s why I have life insurance, too. lol)
You can ask the realtor to ask the home seller, but you may not be able to get the same insurance (so their insurance may be cheaper than you will be able to get), or they may have had claims and that really can make your insurance go up. You can call insurance companies to give you an idea, or ask the realtor to. Start with the major companies like State Farm or Allstate, to get an idea, be careful with Mercury, they seem to have less coverage for more cost. If you have good auto insurance, see if you can get a discount if they cover your home, too.
For real estate tax, expect about 1.2% yearly of the sales price / value of the home. It might go up a bit every year if they increase the value of the home, or they add new taxes. It depends on how you pay it when it is due, the mortgage lender may require you to put your tax and insurance payments monthly into an escrow account. I’ve always paid apart from my mortgages, so my tax is due half in November/December and half in February/April.
http://www.homeloanlearningcenter.com/MortgageBasics/WhatsinaMortgagePayment.htm
Did they tell you about PMI, private mortgage insurance, if you don’t put down 20%?
http://www.frbsf.org/publications/consumer/pmi.html
If you’re going to live in the home, file for Homestead Protection. It also gives you a little bit off on your property taxes. It’s easy to file yourself.
http://dca.lacounty.gov/TSHomestead.html
http://www.lacountypropertytax.com/portal/list/faq.aspx?faqID=58
Good luck!
References :
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Mortgage Broker