property taxes and escrow

[ski]

Is it better to pay for your property taxes outright rather than having them escrowed into the monthly payment?

[Ima saver]

Re: property taxes and escrow

I think it is better. I save weekly for my property taxes once a year. That money can earn interest sitting in a savings account for a year.

[ski]

Re: property taxes and escrow

I am assuming that the interest is substantial, or even any little bit is better than nothing?

Do you know how to separate them from our monthly payment?

[boefixepa]

Re: property taxes and escrow

You have to call the company servicing your mortgage. Some do not allow you to do it and some may charge you a little for closing the escrow account. You may also need to contact your county, and home insurance company so that they bill you and not your mortgage company. You should be able to get at least 4-5% on it for the time it is sitting in your savings account. Do be sure to still set the money aside for it every month or however you were doing it before. If not you will have to come up with it all at once and they may (or may not) be difficult for you. Personally I set it aside everymonth.

Search for similar threads...I know this had been talked about before.

[ski]

Re: property taxes and escrow

Thanks for the info!!

[Ima saver]

Re: property taxes and escrow

I set it aside weekly, it only earns a little interest, but it is better than nothing. Of course, it depends on how high your taxes are. Mine are fairly low, compared to most on here, even though my house is large.

[ski]

Re: property taxes and escrow

Are your prop taxes low b/c of where you live?