When a construction loan is to go to perm, how do you estimate tax payments for escrow?
For the most accurate assessment, wouldn't it be prudent to multiply the current tax rate by the appraised value of the new property?
Some of my lenders want to use 80% of the appraised value. To me, this gives the appearance of manipulating the monthly payment to enable the borrower buy "more house"....qualify for a bigger loan....which in turn makes more money for the mortgage lender.
Additionally, this might result in payment shock later, and I think might fall into the UDAAP arena. Am I over-thinking?
I would welcome any comments.
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