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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Paying taxes in mortgage or not
Do you pay your taxes within your mortgage payments, or pay it separately? I'm thinking I want to do it separately because I don't like the idea of having to have a cushion within a monthly payment and would rather pay it as I go.
Thought or opinions?
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Posted 5/8/12 4:16 PM  |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Paying taxes in mortgage or not
I don't think most banks will let you pay on your own - they want to insure that the taxes are being paid.
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| Posted 5/8/12 4:17 PM |
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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Re: Paying taxes in mortgage or not
Posted by chilltocam
I don't think most banks will let you pay on your own - they want to insure that the taxes are being paid.
My MIL pays it separately...she's aggressively telling us that is how we should do it too bc why should the bank hold our money/make interest off it to have a "cushion" in case the taxes go up
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| Posted 5/8/12 4:26 PM |
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PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
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Re: Paying taxes in mortgage or not
Posted by retrochick
Posted by chilltocam
I don't think most banks will let you pay on your own - they want to insure that the taxes are being paid.
My MIL pays it separately...she's aggressively telling us that is how we should do it too bc why should the bank hold our money/make interest off it to have a "cushion" in case the taxes go up
I've never heard of anyone paying them on their own. They've always been rolled into the mortgage. Check with the bank you are using for your pre-approval. i think PP may be right, I 'm not sure banks will allow this anymore. The rules have changed DRASTICALLY with mortgages just within the past 5 years. Maybe you MIL got her mortgage a while ago?
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| Posted 5/8/12 4:33 PM |
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ElizaRags35
My 2 Girls
Member since 2/09 20494 total posts
Name:
Me
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Re: Paying taxes in mortgage or not
Ours is rolled in with the mortgage. We weren't given an option otherwise. I find it easier b/c it's one less thing to think about or worry about paying. Maybe if LI taxes were cheap like other parts of the country, it would be easier to pay separately but I know for us, there is no way we would be able to come up with the amount our taxes are.
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| Posted 5/8/12 5:27 PM |
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Melmel821
Love being a mom!
Member since 5/08 2776 total posts
Name:
Melanie
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Re: Paying taxes in mortgage or not
The taxes are held in an escrow account your lawyer opens up for you. I'm not sure the bank makes money from that. I like not having to worry about paying a few grand twice a year.
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| Posted 5/8/12 5:32 PM |
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Re: Paying taxes in mortgage or not
Posted by retrochick
Posted by chilltocam
I don't think most banks will let you pay on your own - they want to insure that the taxes are being paid.
My MIL pays it separately...she's aggressively telling us that is how we should do it too bc why should the bank hold our money/make interest off it to have a "cushion" in case the taxes go up
We pay ours separately, but it's not always an option for everyone. I think it depends on the bank's policy, the type of loan you have, and the percentage you are putting down.
It's nice to be in control of it and to pay the exact amount, but you really have to be disciplined about putting aside the money to pay the tax bill when it comes. It's not fun to be hit with the quarterly whopping bill!
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| Posted 5/8/12 7:07 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: Paying taxes in mortgage or not
We pay them on our own. I didn't want the bank to escrow MY money. My bank said as long as we put 20% down we could do it on our own
Message edited 5/8/2012 7:26:52 PM.
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| Posted 5/8/12 7:26 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Paying taxes in mortgage or not
My taxes are built into my mortgage payment. I actually love it this way because I never have to think about paying my taxes or worrying that I didn't put enough aside when the tax bill comes due. One less bill to worry about.
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| Posted 5/8/12 8:52 PM |
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ttcing
LIF Adolescent
Member since 8/09 851 total posts
Name:
Mel
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Re: Paying taxes in mortgage or not
Im with wells fargo n i pay seperately. As long as u put 20 percent down n own the home for a certain amout of time u can pay which ever way please. N i agree with ur MIL ..y should the bank hold my money..i like having my
Money in an account with an interest n besides the banks take more then they need. We have been payin on our own for a year n it works for us!
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| Posted 5/8/12 8:57 PM |
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muffaboo
LIF Adult
Member since 12/10 3797 total posts
Name:
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Re: Paying taxes in mortgage or not
We pay our taxes twice per year, not monthly.
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| Posted 5/8/12 9:19 PM |
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pnbplus1
Family
Member since 5/09 5751 total posts
Name:
Mommy
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Re: Paying taxes in mortgage or not
We pay our taxes and home insurance separately. Our bank (B of A) gave us the option, we closed in 2009 so not that long ago. We did put 20% down.
I like that we pay our own taxes. We set aside money on a monthly basis for our taxes. My parents' taxes are in with their mortgage and everytime they go up, they are required to put more money in escrow. Since escrow accounts require a 2 month cushion, they always have to deal with either paying a larger lump sum so their monthly payments don't increase too much, or their monthly payments increase significantly. They hate it.
DH keeps detailed records/spreadsheets of our bills and spending and knows ahead of time when taxes are due (same schedule every year) so there aren't really any surprises.
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| Posted 5/8/12 10:23 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Paying taxes in mortgage or not
We did not have the option of paying separately with our loan. I believe it depends on the type of loan you get
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| Posted 5/8/12 10:36 PM |
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Kissy331
My two miracles!
Member since 5/06 17826 total posts
Name:
Kristen
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Re: Paying taxes in mortgage or not
We have always paid our taxes separately. I don't like the fact that it would be lumped into the mortgage & have that big check every month. We feel much more comfortable being in total control of our money.
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| Posted 5/9/12 8:31 AM |
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curiousgeorge
LIF Adolescent
Member since 10/10 867 total posts
Name:
MAMA
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Re: Paying taxes in mortgage or not
Ours are put into escrow. One less thing to have to think about.
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| Posted 5/9/12 9:23 AM |
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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: Paying taxes in mortgage or not
Posted by chilltocam
I don't think most banks will let you pay on your own - they want to insure that the taxes are being paid.
Most will default that you escrow, however you can always pay them on your own. You have to specifically ask for this and it usually requires underwriter's approval.
You probably need superior credit, at least 10% down (or most likely 20%).
I pay my taxes on my own twice a year. I don't need the bank screwing up my escrow payments. I also prefer to earn interest on my money which is way more than the petty interest the bank escrow gives.
Also if you pay on your own, you have the option of paying in advance which gives you a small discount on your taxes (TOB does this). The bank won't do this as they always send payments on the last day they are due.
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| Posted 5/9/12 9:27 AM |
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LittleDiva
LIF Adult
Member since 9/11 1284 total posts
Name:
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Re: Paying taxes in mortgage or not
mine are in our mortgage payment...one less thing to worry about.
inlaws pay it twice a year.
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| Posted 5/9/12 9:56 AM |
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MrsS1976
LIF Adolescent
Member since 5/11 534 total posts
Name:
M
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Re: Paying taxes in mortgage or not
Posted by Kissy331
We have always paid our taxes separately. I don't like the fact that it would be lumped into the mortgage & have that big check every month. We feel much more comfortable being in total control of our money.
Same here. We like the mortgage payment being manageable each month and having the $$ for taxes in our bank acct.
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| Posted 5/9/12 11:15 AM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
Name:
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Re: Paying taxes in mortgage or not
In most cases you do not have a choice if you have a mortgage, especially with the new rules/restrictions..
Also, If you look at your account with your mortgage lender... you will see that you earn interest on you esrow account....
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| Posted 5/9/12 11:41 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Paying taxes in mortgage or not
If you are putting 20% down you should be able to find a lender that will allow you to pay directly. We used Continental .
You will also need less money at closing as you won't be required to have the 6 mo's worth of payments in escrow up front.
Like a previous poster stated I like getting my tax bill and being able to save exactly what I need each month to cover. I don't have to worry about the escrow amount being too much or too little.
Just so you know, you are earning the interest on the money held in escrow, its not that the bank is profiting from it.
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| Posted 5/9/12 12:52 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Paying taxes in mortgage or not
Ours are rolled into the mortgage.
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| Posted 5/9/12 1:23 PM |
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IrishMom77
Brothers!!
Member since 8/05 3498 total posts
Name:
Roseann
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Re: Paying taxes in mortgage or not
We pay them separately
The times they are due is a good time for us (bonuses and annuity payments) So we do it that way
Town sends us a bill and we pay them. Apparently soon u will be able to pay online (got a notice with Our May bill)
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| Posted 5/9/12 2:15 PM |
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