How much does home insurance cost in Massachusetts?
When you buy a home there are a number of costs associated with the closing. You will most likely need to provide a down payment to the bank, hire a home inspector, and pay the dreaded CLOSING COSTS.
Closing costs include loan origination fees, taxes, charges for credit reports, discount points you pay upfront to bring down the interest rate, and document preparation and filing fees.
One cost that is often overlooked by home buyers is homeowners insurance.
More often than not, the lender will require you to pay the first year’s policy premium in full. When an insurance premium is escrowed, the lender collects funds as part of your monthly mortgage payment to put in an account to pay the insurance and property taxes.
The money paid as part of your mortgage payment is set aside to pay next year’s homeowners premium. By the time the next insurance payment is due, the escrow account has accumulated enough money to pay the policy in full.
When there is a mortgage on your home, the lender will require you to carry homeowners insurance to protect the property.