First Property - Mortgage Question

[Ron Grose]

I am under contract for my first rental property, a duplex.   I was referred to lender by agent.  We worked out a rate, about a point higher than advertised rates since this is a rental, 25% down.   I'm told that is typical on investment property.  When I received the contract today I was surprised that the property taxes are in escrow.  I prefer to pay the taxes when due (Jan/July) Vs escrow.  Questions are is the information accurate about the rate being higher on investment property and will lenders always require property taxes be put in escrow on investment property?

[Mike McCarthy]

Ask about the escrow. Depending on the bank, the rate may or may not change.

My most recent purchase included insurance escrowed but not taxes. If insurance was not escrowed, it would have raised the rate I think 1/2 point - which wasn't worth it to me.