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DUCKS2001
Then there was 2
Member since 3/06 5696 total posts
Name:
Christine
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taxes in mortage or not
just curious and why?
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Posted 2/12/08 12:37 PM  |
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: taxes in mortage or not
My mortgage company requires it to be in.
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| Posted 2/12/08 12:45 PM |
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LoriH
There's no place like home
Member since 8/07 4110 total posts
Name:
Lori
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Re: taxes in mortage or not
We do because it is just easier.
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| Posted 2/12/08 12:45 PM |
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NF930
LIF Zygote
Member since 2/08 31 total posts
Name:
Nikki
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Re: taxes in mortage or not
I think (especially if you are a first time home buyer) that most places require it because they are afraid it won't be paid on time. I think you can make a convincing case to do it on your own, but I find it convienent to not have to worry about another payment. Its also nice cause its not one lump sum, its split up into payments over the year.
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| Posted 2/12/08 12:52 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: taxes in mortage or not
We did it b/c it was easier. At some point, we'll take it out, but for now, with us getting used to owning and paying for a home, it's just easier for us.
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| Posted 2/12/08 12:52 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: taxes in mortage or not
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.
It's def a personal preference. I know people who aren't as good budgeters, so for them it's easier just to pay it monthly and not have to worry about it.
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| Posted 2/12/08 12:55 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: taxes in mortage or not
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.
That said, few lenders offer this option to first time home buyers, so you may not get to choose. (And FYI, if the lender tells you that you may opt out of escrow, get that in writing -- in the form of a GFE or otherwise -- ASAP. Many lenders yes you to death and then hit you with the "reality" of the deal later on. Get everything in writing!)
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| Posted 2/12/08 12:57 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: taxes in mortage or not
Posted by leese
My mortgage company requires it to be in.
Same with us.
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| Posted 2/12/08 1:13 PM |
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danielleandscott
My new 71 Super Beetle
Member since 5/05 13476 total posts
Name:
Scott
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Re: taxes in mortage or not
We did it because it was easier.
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| Posted 2/12/08 1:20 PM |
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Kissy331
My two miracles!
Member since 5/06 17826 total posts
Name:
Kristen
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Re: taxes in mortage or not
Our taxes are not in with our mortgage. We kept them separate for personal reasons. For us, we are able to budget out the money so we pay our taxes 4 times a year & that way if our taxes go up, our mortgage payments do not.
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| Posted 2/12/08 1:37 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: taxes in mortage or not
Posted by NF930
I think (especially if you are a first time home buyer) that most places require it because they are afraid it won't be paid on time.
This is true.
Honestly, while we do not escrow, lenders have every right to be fearful about this. A tax lien on your property is always SENIOR to all other liens, including your motgage.
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| Posted 2/12/08 1:38 PM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Re: taxes in mortage or not
We chose not to escrow. We were first time homeowners but, we closed before the subprime situation got to the point where it is now.
We were told we needed a year's worth of taxes in escrow at closing by our lawyer as per county law (we're in Rockland). We would be making our monthly payment on top of that so it was a lot of money for us to be shelling out while we could be making interest on it.
I have money automatically sent to my ING account to cover the taxes when they become due.
Like Kara said - it's in the bank's best interest to pay your taxes so it's a lot harder now than it used to be.
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| Posted 2/12/08 1:51 PM |
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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Re: taxes in mortage or not
I think the same goes for us...required.
I do like it that way. Its one payment I make a month. Something else I dont have to worry about paying for.
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| Posted 2/12/08 2:00 PM |
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MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
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Re: taxes in mortage or not
We used Countrwide as our Mortgage company, in aug 2006, we were not required but i iknow they preferred it.
But FH did not want to keep thousands of dollars in an escrow account
So we pay our taxes 4 times a year.
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| Posted 2/12/08 2:11 PM |
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snowprincess
My happy babies
Member since 3/06 3428 total posts
Name:
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Re: taxes in mortage or not
we chose not to and we are first time buyers- most banks only require if you put under 20% down
it has worked out for us well because the estimate would have been very off from our actual taxes as we are in new construction and our building won't be reassessed for 2 more years - it was a piece of land before - so we pay a 1/4 of our expected taxes each year
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| Posted 2/12/08 2:32 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: taxes in mortage or not
yes because it's easier right now.
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| Posted 2/12/08 2:37 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: taxes in mortage or not
We did, but we took them out of escrow for this tax year. Our taxes went up because we lost STAR (we closed after the deadline). The bank wanted a huge buffer in the escrow account, that, frankly, would have been difficult to manage in a monthly payment. So we set up an ING account and now the money goes right into there twice a month. We earn interest on it too.
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| Posted 2/12/08 2:44 PM |
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MadDogMrsT
Wishing & Hoping
Member since 1/08 1227 total posts
Name:
Here's Hoping
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Re: taxes in mortage or not
My Mortgage company required it
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| Posted 2/12/08 2:48 PM |
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NoStressMom
My Heart and Soul
Member since 5/05 11122 total posts
Name:
D
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Re: taxes in mortage or not
easier
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| Posted 2/12/08 2:52 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: taxes in mortage or not
Posted by leese
My mortgage company requires it to be in.
Ditto this. We can pull them out after we have a certain percentage of equity in the house, but right now they have to be in. Makes it easier for us to pay them all in one shot anyway right now.
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| Posted 2/12/08 3:00 PM |
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Sweets13
Bella Bambini
Member since 5/05 9300 total posts
Name:
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Re: taxes in mortage or not
Not required, but we preferred that they be included! I rather they be included~
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| Posted 2/12/08 3:11 PM |
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JessInCA
live laugh love
Member since 8/06 5082 total posts
Name:
Jess
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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.
This is exactly the reason DH gave me, so we switched and took our taxes out of the mortgage payments this year.
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| Posted 2/12/08 3:52 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
ok let me get this straight...
IF i dont put down 20% the taxes HAVE TO stay in the mortage.
IF i put 20% down i can keep my taxes out of my mortage??
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| Posted 2/12/08 4:16 PM |
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igottabeme
Its peanut butter jelly time!
Member since 1/08 2340 total posts
Name:
Wouldnt you like to know! ;)
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Re: taxes in mortage or not
i escrow them now but i'm going to call and see if i can change that now.
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| Posted 2/12/08 4:19 PM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Re: taxes in mortage or not
Posted by DUCKS2001
ok let me get this straight...
IF i dont put down 20% the taxes HAVE TO stay in the mortage.
IF i put 20% down i can keep my taxes out of my mortage??
It depends on your lender. They've tightened things up recently.
We put 20% down and paid a fee to waive escrow.
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| Posted 2/12/08 4:27 PM |
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