starting an Escrow account?

We never did our taxes through Escrow account - we always pay lump sum throughout year and its hurting us now. I called town and they said its easy to set up with them - the bank will contact them. But - what bank? Does it have to be the bank we have mortgage with?

TIA!

Re: starting an Escrow account?

Usually it's the bank you pay your mortgage through because it's the easiest and you would make only one payment per month. I would start there.

Re: starting an Escrow account?

An escrow account is set up through your mortgage. It would divide your taxes and insurance payment into twelve payments plus additional monies. I don't love escrow accounts, but our refi required it. Just so you know they have an additional $4000 from us sitting in the escrow account. I really hate it to be honest.

Can you create a separate account to auto pay from your check to know that X dollars is for your insurance and taxes?

Re: starting an Escrow account?

I would set up your own escrow - maybe do a separate savings or checking account to put x amount in each month and then make the payments from that account for the taxes and insurance.

Re: starting an Escrow account?

Our escrow is who we have our mortgage with. It our mortgage, taxes, and homeowners insurance. We autopay 2x a month but it's all one lump sum to the mortgage company. We don't even think about it.

Re: starting an Escrow account?

It would be through your mortgage company. We also do not escrow and writing out the checks for school taxes is just painful, so I hear you on that. For me, it would be worse (mentally) paying it every month