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MSeid
LIF Adolescent
Member since 11/05 805 total posts
Name:
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Escrow or not?
I am kind of on the fence with whether or not to escrow my taxes and HO into my mortgage. If I don't escrow, do I still have to pay the 6 mths upfront? I was thinking I could just take the $ I was going to use for the upfront at closing and put it in one of my savings and keep it for when taxes are due and then discipline myself to put away my tax money every month?
However, I hear that escrow is just the easiest way to handle bills/taxes. I thought escrow was the best route but I hear other opinions on it and now I'm confused.
What are your opinions? Pros and cons?
Message edited 3/15/2007 2:11:11 PM.
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Posted 3/15/07 2:09 PM  |
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snowprincess
My happy babies
Member since 3/06 3428 total posts
Name:
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Re: Escrow or not?
I don't have my taxes escrowed but i have an ing account to pay into each month - sorta my own version of escrow
i have a condo - so home owner's isn't necesary through escrow
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| Posted 3/15/07 2:19 PM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Escrow or not?
I have my taxes and house insurance thru escrow and honestly, I'd rather pay the extra $50 or so a month for the bank to take care of it for me. I have enough other bills to worry about than needed to add another 3 into the mix.
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| Posted 3/15/07 2:25 PM |
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AOMom
LIF Adolescent
Member since 11/06 856 total posts
Name:
j
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Re: Escrow or not?
It wasn't a choice with our mortgage- we had to have home owner's insurance and taxes in escrow for at least a year. We have left it that way even after the year b/c it is just easier.
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| Posted 3/15/07 4:46 PM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Escrow or not?
Posted by Rooster
It wasn't a choice with our mortgage- we had to have home owner's insurance and taxes in escrow for at least a year. We have left it that way even after the year b/c it is just easier.
we too didn't have a choice in the matter
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| Posted 3/15/07 4:46 PM |
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Gertyrae
Peace out Homies!
Member since 5/05 20046 total posts
Name:
Gerty ®
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Re: Escrow or not?
We had the option of doing homeowners on our own, but put it into the escrow account. It's just easier to do it this way as opposed to paying a $3000 bill every six months.
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| Posted 3/16/07 7:56 AM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Re: Escrow or not?
We chose to pay it on our own. We needed to have a full year of taxes at closing if we would open an escrow account and based on the timing of our closing, they would be holding a lot of money.
We plan on setting the money aside each month into an ING account and then pulling it out when the money is due.
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| Posted 3/16/07 9:05 AM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Escrow or not?
Posted by snowprincess
I don't have my taxes escrowed but i have an ing account to pay into each month - sorta my own version of escrow
i have a condo - so home owner's isn't necesary through escrow
This is what we do too. In my opinion they wanted alot of money at the closing to hold in escrow and I dind't think they should hold the money and make no interest on it. Although it is one more bill to pay I like to be in control of my own money. I had a friend and the bank was escrowing her taxes wrong--after a year they told her that she owed them $5000 or she could pay $500 more a month on top of her mortgage payment & escrows to get the account up to the balance they wanted. To me it is more stressful.
You may still have to pay your taxes at closing depending on when you are buying. If you are buying in suffolk the bank may require you pay the May taxes. If you are closing in Nassau they are going to require you pay the April school taxes and will take about 6 months in addition for the county tax due in july.
Message edited 3/16/2007 9:16:58 AM.
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| Posted 3/16/07 9:15 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Escrow or not?
this is going to be my first time around too, so i can't speak from experience... but....
i have a friend who is doing it on his own and when he talks about it, he always mentions how he wants to kick himself in the a$$ for doing it that way. he says it was easier back when he had escrow take care of it all.
hth
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| Posted 3/16/07 10:22 AM |
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