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?