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Dani00518
Gorgeous
Member since 5/05 2730 total posts
Name:
Danielle
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If you escrow taxes........
If you escrow say 10 months of taxes then does that mean the taxes would not be a part of my mortage payment until that 10 months is up...I'm confused?
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Posted 9/18/07 12:50 PM  |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: If you escrow taxes........
Message edited 1/30/2009 10:18:22 PM.
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| Posted 9/18/07 12:59 PM |
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Mrs-D-Girl
Love my fur baby
Member since 8/07 5183 total posts
Name:
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Re: If you escrow taxes........
You would still pay every month in your Mortgage payment. Escrow is like a "pre-payment" so the money is there when the bank needs to pay it.
Message edited 9/18/2007 1:25:34 PM.
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| Posted 9/18/07 1:25 PM |
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shiv
Twinsanity!!
Member since 5/07 4747 total posts
Name:
Shiv
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Re: If you escrow taxes........
Posted by Mrs-D-Girl
You would still pay every month in your Mortgage payment. Escrow is like a "pre-payment" so the money is there when the bank needs to pay it.
right, but the bank will hold that 6 months escrow for as long as you own the home. So that's 6 months of taxes that you won't see back until the home is sold. this is why we are not escrowing.
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| Posted 9/18/07 3:57 PM |
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Mrs-D-Girl
Love my fur baby
Member since 8/07 5183 total posts
Name:
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Re: If you escrow taxes........
Posted by shiv
Posted by Mrs-D-Girl
You would still pay every month in your Mortgage payment. Escrow is like a "pre-payment" so the money is there when the bank needs to pay it.
right, but the bank will hold that 6 months escrow for as long as you own the home. So that's 6 months of taxes that you won't see back until the home is sold. this is why we are not escrowing.
See I am so up in the air about doing this also. In a way, I feel one less thing to worry about and in another I am really on top of paying what I need to 
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| Posted 9/18/07 4:04 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: If you escrow taxes........
Posted by Mrs-D-Girl
Posted by shiv
Posted by Mrs-D-Girl
You would still pay every month in your Mortgage payment. Escrow is like a "pre-payment" so the money is there when the bank needs to pay it.
right, but the bank will hold that 6 months escrow for as long as you own the home. So that's 6 months of taxes that you won't see back until the home is sold. this is why we are not escrowing.
See I am so up in the air about doing this also. In a way, I feel one less thing to worry about and in another I am really on top of paying what I need to
You should even consider whether your bank will offer you that option. Many banks are currently not allowing escrow to be waived where it's a first time homebuyer or someone putting down less than 20%.
We had to fight with our bank to allow it for us (loooong story, but they tried to tell us at the last minute we couldn't waive escrow though we already had it in writing that we could.) We are first time homebuyers, but we had good credit, low debt-income ratio, and were buying a house well beneath our means. Definitely check to make ABSOLUTELY sure that they will allow you to do this. We were yesed to death by our bank about this and then they tried to tell us today (3 days before closing) that we couldn't waive escrow. After a good fight over it, they are allowing us an exception and letting us waive escrow -- but pretty much only b/c they already gave it to us *in writing* that we could waive escrow on this particular home purchase.
It's good to waive escrow *IF* you are very responsible with money. It's a huge deal to miss a tax payment, especially for the mortgage company b/c a tax lien is superior to a mortgage lien on the property. If you are certain you can do it, then it saves you on the closing costs and lets you earn the interest on that money before paying taxes. It also saves you from the pain of having your mortgage company constantly requiring you to escrow more money (which they can do and will do).
At the same time, if you're not confident about your ability to manage the money and handle the taxes, it's probably better to let the mortgage company handle it.
I think both options have their plusses and minuses and people just need to decide which is the best choice for them.
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| Posted 9/18/07 4:28 PM |
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