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Contributor
A few questions:
1. Is it possible to pay homeowners insurance for the whole year up front instead of doing monthly payments through my mortgage?
2. Is there any kind of discount for doing so?
3. What's the process for doing this?

3 REPLIES

Hi Bandguy,

I am  not an expert in this area, so I have asked a specialist here at USAA and will get back to you when I get an answer! Thank you!

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Bandguy,

Here is what our expert had to say! I hope this helps!

 

If you have already closed on a mortgage which includes a monthly escrow for your insurance, you’ll need to call your servicer and see if they allow waiving the escrow. If you are in the process of closing a mortgage loan, ask your processor if you can waive escrow. By the way, if a lender allows waiving the insurance escrow they will typically allow waiving the property tax escrow as well. Because this is considered an added layer of risk (if the servicer is collecting monthly they are assured the annual payment will be met) most lenders charge a fee to waive escrows.

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Thanks for the information.  That is very helpful.