gregorygarver.com

onukpa · Joined: 20 Apr 2006 Posts: 5

before they refinanced their house this year, the property was included in with the mortage payment.. now it is seperate.. why is that ? and is it better in the long run?

lorennys2002 · Joined: 09 May 2005 Posts: 3

I do that to , why put it in a non interest baring escrow account when you can hold on to the money yourself and pay the taxes when they are due...

FRAGINAL-NOYPI · Joined: 07 May 2003 Posts: 4

It depends on how it is set up. When paid with the mortgage, property tax is put into escrow until they are due. Many find this easier because they are not paying one lump sum twice a year. Anyway, it does not really matter either way since you will stay be paying the same either way.

massimo · Joined: 21 Sep 2006 Posts: 5

You can easily separate your property taxes from your mortgage payment, you just have to watch your finances a little bit closer to ensure that you have enough money at tax time to pay for your property taxes. I like to have it included in my mortgage because that way I don't even have to think about it, and also the money sits in an escrow account and I earn the interest on it.

loanmasterone3072 · Joined: 28 Jun 2005 Posts: 4

Most loans require property tax be placed in escrow, as part of the monthly payment, which is to the advantage of the lender because they (in theory) can draw interest on this money that is only paid once a year. The reason behind the requirement from the lenders point of view is that if the taxes go unpaid a tax lien will be placed on the property which must be paid off before the primary lien of the mortgage. Still, some loans don't require that taxes be placed in escrow thus the home owner pays taxes separately which can be devastating to some home owners who have neglected to set money aside for this yearly bill even when they knew it was coming. If you manage your money well, you are better off without having your taxes as part of the payment.