18 months of prepaid property tax plus 9 months of escrow??

Is this normal? We’re doing a Freddie Mac program, it just seems like a lot to pay at closing to basically sit there.

Also I’m a little fuzzy on what each means, prepaid means we’re paying our first 18months of tax upfront at closing, and escrow means we’ll have an additional 9 months of buffer sitting in there, that we’ll keep paying additional into that it takes out so that 9 months will pretty much still be sitting there give or take a couple months?

So if we’re paying 18 months prepaid at closing, does that mean the escrow won’t even be taken out of for 18 months, and we’ll still be paying into it the whole time? So eventually we’ll have 27 months of escrow sitting in there that we can’t really use until we sell the house, if we even do? 2 years of taxes seems like a lot to not use… am I seeing this wrong?

submitted by /u/asearchfordelicious
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Is this normal? We’re doing a Freddie Mac program, it just seems like a lot to pay at closing to basically sit there. Also I’m a little fuzzy on what each means, prepaid means we’re paying our first 18months of tax upfront at closing, and escrow means we’ll have an additional 9 months of buffer sitting in there, that we’ll keep paying additional into that it takes out so that 9 months will pretty much still be sitting there give or take a couple months? So if we’re paying 18 months prepaid at closing, does that mean the escrow won’t even be taken out of for 18 months, and we’ll still be paying into it the whole time? So eventually we’ll have 27 months of escrow sitting in there that we can’t really use until we sell the house, if we even do? 2 years of taxes seems like a lot to not use… am I seeing this wrong? submitted by /u/asearchfordelicious [link] [comments]

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