Page 16 - How To Buy A Home In Louisville

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Questions to Ask Your Lender (Continued)

What does it mean to buy down a point, and how much does that cost?

You can pay a discount point at closing to get a lower monthly payment. This could be a good choice if you
are going to be there a long time. Lender’s answer:

How do I estimate what my property taxes will be on the property?

Usually you can take the sales price multiplied by a number between .0087 and .0122 per year depending
on county, city, fire district, and school district. It’s easiest to just multiply .01 by the sales price and divide
by 12 to get the monthly payment. For example, if you buy a house for $240,000, your annual taxes are
$2,400, and your monthly taxes would be $200. Lender’s answer:

What will Owner’s Title Insurance cost?

This will vary; ask your lender how much your title insurance will be. Owner’s title insurance is not required
but it IS recommended. Lender’s title insurance is a required closing cost. Lender’s answer:

How do I estimate what Lender’s Title Insurance will cost?

This will vary; ask your lender how much your lender’s insurance will be. This type of title insurance is a
required closing cost. Lender’s answer:

The River Valley Realty Group - How to Buy a Home in Louisville, Kentucky 14