Do you pay your taxes/insurance in your mortgage payment?

Discussion in 'The Okie Corral' started by mike7465, Feb 11, 2010.

  1. mike7465

    mike7465 Smirking

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    Thinking of dropping my taxes and insurance from my mortgage payment. Any one here done it?
     
  2. 220-9er

    220-9er

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    You may want to look at your contract to see if your mortgage company will allow that.
     

  3. JJohnson

    JJohnson Call me Jeff

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    I escrow my property taxes but I pay my insurance annually.
     
  4. TexanRon

    TexanRon Come 'n Take It

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    Absolutely!! Do it, if you can. What they hold in escrow is often way more than you owe. Why should they hold your money all yaer, interest free? I had "x" amount of money automatically withdrawn every month from checking account and deposited into a savings account, which was used at year end to pay taxes. Never had to worry about escrow overages or shortages. Just make sure you have the discipline to have the money at year end.
     
  5. PAGLOCK23

    PAGLOCK23 NRA Member

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    both of them are in my payment. My taxes and ins. is more than the mortgage.
     
  6. JohnnyK221

    JohnnyK221

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    We bought a house 16 years ago and the bank didn't like it, but they let us keep the tax & insurance money.

    We bought a new house last August. Once again they initially objected, but we still keep the money and pay the taxes & insurance ourselves.
     
  7. dkbrucedvm

    dkbrucedvm

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    No for the residence (required by mortgage company). Yes for business real estate. Doesn't make a huge difference either way to me, as I don't live in a high-tax area.
     
  8. mike7465

    mike7465 Smirking

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    I looked at the paperwork and it isn't checked where it says I have to have them pay it. Going to talk to them tomorrow.

    They want me to pay them 2 months of a deposit as an escrow cushion. I have never missed a payment or been late even by a day. My credit is great. These guys (Cenlar) are doing it to a lot of people.
    Funny part? We never would have thought of paying it ourselves if they hadn't tried this stunt...
    Collecting interest on our escrow account....
    grumble..grumble...grumble...
     
  9. Ender

    Ender ComfortablyNumb

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    Absolutely not. Escrow has to reach its lowest point at least once in a 12 month period. Banks (ime) don't raise your house payment just to give you an extra 5k at the escrow analysis point.

    I do it mainly to avoid paying three bills vs. one, however.

    I think it only really makes a difference in the first year if you go from non-homestead to homestead, OR possibly if your house is assessed yearly and ends up at a much lower value. I requested an escrow analysis about a month after my house got homesteaded, and got a decent check to play with. I do not expect anything major in the future, however.
     
  10. community

    community Member

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    both of my abodes do not take out taxes and insurance. I like it that way. But, when taxes and insurance comes due, that is a lot of money to dish out.