Question

If property owners fail to pay their taxes in a timely fashion this can create a first lien on the mortgaged property. In order to protect against this lenders often require that borrowers add what fraction of their estimated tax bill to their required monthly mortgage payments?

Answer 1

1/12

Step-by-step explanation:

The above case relates to the closing cost. Closing costs refers to the expenditures that investors and vendors usually pay to conclude a property investment sale, above and beyond the price of the land.

Costs involved can comprise mortgage origination payments, concession points, assessment fees, title checks, homeowner's insurance, assessments, taxes, deed-recording fees and credit report fees. Prepaid expenses, such as property taxes and homeowners' insurance, are those that recur over time.