So what now???

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  • #67200
    kb7571
    Participant

    I need insight.

    After purchasing a home will we continue to pay the property taxes and homeowners insurance through naca as long as we have a naca mortgage? And if so, how will taxes be updated to them every year?

    #67216
    TTrumble
    Member

    Hello kb7571,

    Your monthly mortgage payment has four components, commonly referred to with the acronym PITI, which stands for Principal, Interest, Taxes and Insurance.

    Principal and interest of course are the money you actually owe the bank in repayment of the money you borrowed from them to buy the house.

    In addition, the bank collects the money for the property taxes and homeowners insurance as part of your payment to them each month and puts it in an escrow account on your behalf. Then the bank pays the insurance and taxes at the proper time as required in your state, county, etc.

    Should the amount for the taxes and/or insurance ever change, the bank gets a notification the same time you do and adjusts how much they collect each month to accommodate the change.

    In short, just make that mortgage payment each month and you’ll be fine.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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