Closing Cost - Property Taxes

[Joe Cicero]

Hi all,

I am closing on my first investment property - a 3 unit in upstate NY.  Reviewing closing cost details, I'm not following why I am paying 11 months of property taxes upfront AND as a monthly escrow payment (along with homeowner's insurance). 

Can someone please explain? Thanks!

Joe

[Jason D.]

@Joe Cicero probably because they are due August 1st so you are paying for the 11 months that you owe for 2018-2019 and then the escrow payments are for when they're due next year.