- March 28, 2007 at 3:29 pm #239720BiggerPiggyBankParticipant
I currently have my taxes included with the mortgage payment. What this means
is that the extra I pay each month goes into an escrow account, and the bank
pays the taxes when they come due. I earn interest on the amount in the escrow
I like it because it is convenient, and I don’t have to worry about budgeting
for the tax bill. I have my mortgage with a local bank and feel confident that
they will pay the taxes. They will not do this for insurance, so I pay that
(it seems like the bank would have a vested interest in being sure the
insurance was paid, so I’m surprised that they won’t do this).
For a past house I had both the taxes and insurance included and never had a
problem. But the mortgage company I used “sold” our mortgage to another
company. I guess this is common, and I ended up having 3 different mortgage
companies over the 3 years I owned the house.
Although I never had a problem, I
can see that it would be conceivable that paperwork would get lost through all
these changes and something might not get paid on time.
Good luck in finding your new home.
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