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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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How many of you pay Taxes and homeowners out of pocket?
Refinancing and not sure what to do. we currently pay our homeowners seperately every month, but taxes are part of our monthly payment. Thinking about paying taxes out of pocket as well to have some relief each month.
What do you do and pros/cons of each....
Please note: that most banks charge you a fee at closing now, if you decide to pay these expenses out of pocket...it's a way to get you to have everything rolled in for a safety net for them...
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Posted 9/17/10 1:01 PM  |
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Marbo
LOVE
Member since 7/08 2374 total posts
Name:
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Re: How many of you pay Taxes and homeowners out of pocket?
We used to have everything in the mortgage and when we refinanced they do not pay the insurance, just the taxes...so now once a year we get the insurance bill. It makes no difference to me.
ETA: If they charge you a fee to pay these separate I would just let it all be in the mortgage.
Message edited 9/17/2010 1:16:01 PM.
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| Posted 9/17/10 1:15 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: How many of you pay Taxes and homeowners out of pocket?
I took the taxes and insurance out of my mortgage many years ago.
Best decision I made. I don't have to worry about having the money for extra escrow each year and I put the money each week into a savings account.
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| Posted 9/17/10 1:28 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: How many of you pay Taxes and homeowners out of pocket?
we pay taxes through our mortgage but insurance separately. It seems to work out best for us.
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| Posted 9/17/10 2:13 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: How many of you pay Taxes and homeowners out of pocket?
Posted by Marbo
ETA: If they charge you a fee to pay these separate I would just let it all be in the mortgage.
interesting the fee that they charge for doing this is the same as our Home owners insurance for the year. But if we have the bank take it out, they charge us 1300 at closing for one year up front "cushion" of home owners insurance, then we still have to make monthly payments....so really it's not costing us anything extra....
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| Posted 9/17/10 2:16 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: How many of you pay Taxes and homeowners out of pocket?
We pay it separately and I put away money every month. I just think it is such a pain because when they do the accounting they may have too little even though they have enough to pay the taxes--there is a whole calculation. Then if they have too little they raise your monthly payment or ask for a lump sum. To me it is such a hassle.
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| Posted 9/17/10 4:28 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: How many of you pay Taxes and homeowners out of pocket?
We did not escrow for either and did not pay a fee, we closed in Dec.
I would agree that i would just let them escrow rather than pay a fee
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| Posted 9/17/10 4:54 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: How many of you pay Taxes and homeowners out of pocket?
we are closing in a couple of weeks, and I'm really hoping we can pay it on our own. I have heard several cases where mortgage company says oh by the way, you don't have enough in your escrow account, and they either up the monthly payments or ask for a lump sum. I don't want to deal with that.
is it a must that you pay a fee if you decide to pay taxes on your own??!!!
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| Posted 9/17/10 4:58 PM |
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mrsdukes
LIF Adult
Member since 1/09 943 total posts
Name:
Liz
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Re: How many of you pay Taxes and homeowners out of pocket?
We pay both our taxes and homeowners insurance separate from our mortgage. I like it this way. I know exactly what I am paying, and I put money away every month to cover it. It works well for us.
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| Posted 9/17/10 6:06 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: How many of you pay Taxes and homeowners out of pocket?
we pay both out of pocket
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| Posted 9/17/10 8:17 PM |
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NinaLemon
It's a boy!!!
Member since 10/07 6453 total posts
Name:
Jeannine
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Re: How many of you pay Taxes and homeowners out of pocket?
We pay both out of pocket, always have.
The pros - you collect interest on your money
I can't think of any cons 
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| Posted 9/17/10 8:21 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: How many of you pay Taxes and homeowners out of pocket?
Pay out of pocket. Initially had to set it up in escrow but took it out a couple years later.
I would rather collect interest on my money than the bank
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| Posted 9/18/10 5:35 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: How many of you pay Taxes and homeowners out of pocket?
Posted by jellybean1420
Pay out of pocket. Initially had to set it up in escrow but took it out a couple years later.
I would rather collect interest on my money than the bank
Actually the bank is collecting interest on escrow money for you. You should get a 1098 at the end of the year for escrow bank interest from your mortgage bank.
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| Posted 9/18/10 5:37 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: How many of you pay Taxes and homeowners out of pocket?
Posted by pickles16
we pay both out of pocket
Us too.
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| Posted 9/18/10 9:03 PM |
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MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
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Re: How many of you pay Taxes and homeowners out of pocket?
Pay both out of pocket, its always been like this
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| Posted 9/19/10 9:04 AM |
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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Re: How many of you pay Taxes and homeowners out of pocket?
We escrow for our taxes but pay our insurance every month- it's a hassle really, I'd rather pay it all together.
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| Posted 9/19/10 11:27 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: How many of you pay Taxes and homeowners out of pocket?
Posted by MrsYank
We escrow for our taxes but pay our insurance every month- it's a hassle really, I'd rather pay it all together.
You don't have the option to pay once a year?
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| Posted 9/19/10 11:29 AM |
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