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State of New Jersey Division of Taxation (http://millville.org/treasury/taxation/index.html?relief.htm~mainFrame - broken link)
Estimated quarterly taxes? Do you own your own business?
Or do you have your mortgage set up so you pay your own property taxes? If you do, that's not what estimated quarterly taxes are by "definition" in the world of accounting/business.
I see no need for my mortgage company to keep my money in escrow and pay my property taxes for me (why should the mortgage company benefit from interest on my money?). I do it myself and pay my quarterly tax bills due my township...every 1/4 of the year.
I do as well... last house I had, my mortgage company paid them and I ended up with an interest bill when i sold because they didn't pay them on time! No escrow here..no PMI either... Plus it costs you money to let your mortgage co. pay your bills for you... it's only one check/quarter!
I don't mind too much that the mortgage company pays my taxes. I know people who opt out of it and pay themselves, but to me, that's just another thing I need to remember. Is the savings all that great? You are paying a max of two months' RE taxes in advance. 1-2 months, then they pay the quarterly tax. The interest of 1 or 2 months worth of taxes is my fee for clerical work. lol
I did ask my mortgage company if they charged for having the escrow, they said no.
Here's another example. I just got my quarterly sewer bills in the mail from my city. I wrote a check for the whole year and sent it to them with the four stubs. I hope that's acceptable? Sure, it's not $7000 - $10,000. It's only about $250, but my point is to keep it as simple as possible. I would definitely forget to pay some sort of bill if it were the other way around. Time has a way of sneaking up on you.
I don't mind too much that the mortgage company pays my taxes. I know people who opt out of it and pay themselves, but to me, that's just another thing I need to remember. Is the savings all that great? You are paying a max of two months' RE taxes in advance. 1-2 months, then they pay the quarterly tax. The interest of 1 or 2 months worth of taxes is my fee for clerical work. lol
I did ask my mortgage company if they charged for having the escrow, they said no.
Here's another example. I just got my quarterly sewer bills in the mail from my city. I wrote a check for the whole year and sent it to them with the four stubs. I hope that's acceptable? Sure, it's not $7000 - $10,000. It's only about $250, but my point is to keep it as simple as possible. I would definitely forget to pay some sort of bill if it were the other way around. Time has a way of sneaking up on you.
you can do what cucullin does and have your bank automatically pay them for you, and set up a monthly xfer from checking to whatever account you keep the prop tax money in.
i personally go to the tax office every quarter - it's really no big deal. the thing with escrow is they need to have a cushion, so in the beginning you need to have enough to pay the first tax bill PLUS another few months. And when your taxes go up? After your escrow analysis the new escrow has to cover the actual new amount PLUS the cushion - I've had escrow amounts increase over $400 per month.
you can do what cucullin does and have your bank automatically pay them for you, and set up a monthly xfer from checking to whatever account you keep the prop tax money in.
i personally go to the tax office every quarter - it's really no big deal. the thing with escrow is they need to have a cushion, so in the beginning you need to have enough to pay the first tax bill PLUS another few months. And when your taxes go up? After your escrow analysis the new escrow has to cover the actual new amount PLUS the cushion - I've had escrow amounts increase over $400 per month.
Yep...that increase is WHY I started to pay my taxes on my own. It's not a huge deal for me to know that every few months I need to get that tax bill out. Watching my mortgage increase $300-$400 a month for so many months until it's all "caught up" burned my rear-end.
We got back $888 and I believe our taxes are somewhere around $4,700. Now my parents got back around $1,600 and their taxes are like $9,000-something. So it is based on how much taxes you're paying. The higher your taxes are, the more you get back.
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and have your bank automatically pay them for you, and set up a monthly xfer from checking to whatever account you keep the prop tax money in.
