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skew
LIF Adult
Member since 5/05 6794 total posts
Name:
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Re: taxes in mortage or not
Posted by bicosi
I do no escrow my taxes. I'd rather earn a return on the money by allocating the monthly amount into my money market. I also save on the mortgage servicing fee.
i don't escrow either and agree on all points. was not required or encouraged.
Message edited 2/12/2008 6:05:14 PM.
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Posted 2/12/08 6:02 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: taxes in mortage or not
They are in my mortgage right now, but I want to remove this.
I do earn interest while the money is in escrow and when I set this up it was indeed easier.
But I want to remove this because I want to lower my monthly revolving debt that my credit report shows.
If you are escrowing your taxes, the monthly payment your lender reports to the three credit reporting agencys includes the taxes and homeowners. If I remove this, the lender should report only the principle and interest.
In my case they currently report a payment of $2450 but if I remove escrow they should only report $1750. Thats a $700 difference and if that gets lowered on my credit report, my credit scores may go up which is what I am looking for.
In any case whether it goes up or not, if I want to apply for credit (lets say for some good juicy offer credit cards), the credit cards don't need to know how much I am paying on my house (as far as taxes go).
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| Posted 2/12/08 6:09 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: taxes in mortage or not
Posted by Kara
We opted out of escrow. We are very good with money and saving and would rather earn interest on that money between tax payments than have it tied up with our mortgage lender.
Ditto for us. We were FTBs and it was not required by our mortgage company (Citibank).
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| Posted 2/12/08 6:33 PM |
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mommy2Alex
3 babies for me :)
Member since 5/05 6683 total posts
Name:
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Re: taxes in mortage or not
Posted by skew
Posted by bicosi
I do no escrow my taxes. I'd rather earn a return on the money by allocating the monthly amount into my money market. I also save on the mortgage servicing fee.
i don't escrow either and agree on all points. was not required or encouraged.
Same here.
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| Posted 2/12/08 7:45 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: taxes in mortage or not
We do our taxes separate. I hated every year the mortgage company would want more for escrow. I save the money now and make the interest, not the mortgage company.
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| Posted 2/12/08 8:25 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: taxes in mortage or not
I KNOW I wouldn't be able to save to pay taxes on my own 
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| Posted 2/12/08 8:35 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: taxes in mortage or not
Posted by ave1024
They are in my mortgage right now, but I want to remove this.
I do earn interest while the money is in escrow and when I set this up it was indeed easier.
But I want to remove this because I want to lower my monthly revolving debt that my credit report shows.
If you are escrowing your taxes, the monthly payment your lender reports to the three credit reporting agencys includes the taxes and homeowners. If I remove this, the lender should report only the principle and interest.
In my case they currently report a payment of $2450 but if I remove escrow they should only report $1750. Thats a $700 difference and if that gets lowered on my credit report, my credit scores may go up which is what I am looking for.
In any case whether it goes up or not, if I want to apply for credit (lets say for some good juicy offer credit cards), the credit cards don't need to know how much I am paying on my house (as far as taxes go).
That's a good point!
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| Posted 2/12/08 8:37 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: taxes in mortage or not
Posted by june262004
I KNOW I wouldn't be able to save to pay taxes on my own
I find it very easy. I just take the amount I need each week and put it in a savings account. When the bill comes, I pay it!!!
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| Posted 2/12/08 8:55 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: taxes in mortage or not
Since we are in the minority I figured I would give my response. We didn't want the bank to control our money and typically they hold more then they need to to ensure they have enough in the account to cover your taxes. We put money aside every month into an ing account and then I just transfer money when the bill comes and pay the taxes. Since our taxes are only due twice a year it isn't too difficult. Some banks will give you a better rate if you do escrow with the bank and some banks require you do it espcially if you are a first time home buyer.
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| Posted 2/12/08 11:05 PM |
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DUCKS2001
Then there was 2
Member since 3/06 5696 total posts
Name:
Christine
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Re: taxes in mortage or not
thank you for all these tips it is very helpful
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| Posted 2/12/08 11:13 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: taxes in mortage or not
Posted by csorisi
Since we are in the minority I figured I would give my response. We didn't want the bank to control our money and typically they hold more then they need to to ensure they have enough in the account to cover your taxes. We put money aside every month into an ing account and then I just transfer money when the bill comes and pay the taxes. Since our taxes are only due twice a year it isn't too difficult. Some banks will give you a better rate if you do escrow with the bank and some banks require you do it espcially if you are a first time home buyer.
That is exactly what we do.
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| Posted 2/13/08 8:56 AM |
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lisad117
LIF Toddler
Member since 9/07 433 total posts
Name:
Lisa
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Re: taxes in mortage or not
For us it is just easier to make one payment.
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| Posted 2/13/08 9:22 AM |
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Selden78
I lvoe the fall :)
Member since 6/06 3543 total posts
Name:
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Re: taxes in mortage or not
Posted by leese
My mortgage company requires it to be in.
same with us, but I like it that way, one less ck to send out
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| Posted 2/13/08 9:37 AM |
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LisaI
Momma's Little Beans
Member since 1/06 3923 total posts
Name:
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Re: taxes in mortage or not
We have two home mortagages (2 houses) and did not add them to the mortgage. Reason being our taxes are low and we pay them out right end of year. It keeps our payment low and we prefer to seperate the taxes. Now, if we lived on LI we probably would put them in the mortgage. Not sure??? It's a tough call. We also know at the end of the year we will always have the money to pay it so maybe that's part of it? IDK.
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| Posted 2/13/08 9:52 AM |
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mtnmama
Member since 5/06 4794 total posts
Name:
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Message edited 10/7/2009 11:39:33 AM.
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| Posted 2/13/08 9:57 AM |
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LIPrincess
Foxy Lady
Member since 6/05 1610 total posts
Name:
Jaimie
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Re: taxes in mortage or not
I dont want to worry about "something coming up" or that it wasn't paid in time. It's one less thing for me to worry about.
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| Posted 2/13/08 10:04 AM |
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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: taxes in mortage or not
Posted by cpanyc
I have a question - can this be changed later on?
We are getting ready to close and I think we plan on having the taxes in with our mortgage, but if we decide a couple of years from now to do it on our own would we have to re-finance or can we just change it?
Depends on your lender. I'd ask them now what their policy is and ask for that policy in writing.
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| Posted 2/13/08 10:15 AM |
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ckdk
My girls
Member since 5/05 7027 total posts
Name:
Cheryl
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Re: taxes in mortage or not
Posted by BabyMakesThree
We do because it is just easier.
same here
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| Posted 2/13/08 10:32 AM |
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MetsGirl07
LIF O2 Vendor
Member since 12/07 16202 total posts
Name:
Deanna
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Re: taxes in mortage or not
ours are included
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| Posted 2/13/08 10:33 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: taxes in mortage or not
Posted by cpanyc
I have a question - can this be changed later on?
We are getting ready to close and I think we plan on having the taxes in with our mortgage, but if we decide a couple of years from now to do it on our own would we have to re-finance or can we just change it?
I think so. This is just our 2nd year doing it and we own our home since 1996.
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| Posted 2/13/08 11:03 AM |
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CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
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Re: taxes in mortage or not
When we buy a house we will have the taxes in the mortgage.
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| Posted 2/13/08 12:05 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: taxes in mortage or not
Posted by Kara
Posted by cpanyc
I have a question - can this be changed later on?
We are getting ready to close and I think we plan on having the taxes in with our mortgage, but if we decide a couple of years from now to do it on our own would we have to re-finance or can we just change it?
Depends on your lender. I'd ask them now what their policy is and ask for that policy in writing.
Totally depends on the lender. Here are some of the things they may say:
"We will remove it... but you will have to pay a one time fee" (I don't like this - tell them to waive the fee or threaten to re-finance)
"You can't remove it until you have owned the house for a certain period of time (say a year) or until you have 20% equity" (this is fine and understandable)
"You can't remove it... period" (again threaten to refi - this may get them to change their mind)
"Sure we will remove it and issue you a check for your escrow balance" (hopefully you fall in this category)
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| Posted 2/13/08 12:06 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: taxes in mortage or not
Posted by ave1024
They are in my mortgage right now, but I want to remove this.
I do earn interest while the money is in escrow and when I set this up it was indeed easier.
But I want to remove this because I want to lower my monthly revolving debt that my credit report shows.
If you are escrowing your taxes, the monthly payment your lender reports to the three credit reporting agencys includes the taxes and homeowners. If I remove this, the lender should report only the principle and interest.
In my case they currently report a payment of $2450 but if I remove escrow they should only report $1750. Thats a $700 difference and if that gets lowered on my credit report, my credit scores may go up which is what I am looking for.
In any case whether it goes up or not, if I want to apply for credit (lets say for some good juicy offer credit cards), the credit cards don't need to know how much I am paying on my house (as far as taxes go).
Interesting! I did not think of it this way! Thanks!
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| Posted 2/13/08 1:46 PM |
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IrishMom77
Brothers!!
Member since 8/05 3498 total posts
Name:
Roseann
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Re: taxes in mortage or not
I was a first time home buyer and it wasnt required
We DONT have them in
Just easier for us
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| Posted 2/13/08 1:47 PM |
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miracline
LIF Adolescent
Member since 10/07 575 total posts
Name:
kayanna
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Re: taxes in mortage or not
we dont have it in, we came a little less out of pocket for closing, since our taxes are not much anyways we didn't see a reason..We fianced through chase and they didn't require it.
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| Posted 2/13/08 4:41 PM |
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