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Is it possible to pay all of your property taxes into an escrow account all at once? I originally wanted to pay the town/city property taxes upfront...BUT as I understand it lenders force you to have an escrow account and pay the taxes monthly since I don't have 20% down.
SO, is it possible to fork over the $3,000-$4,000 into an escrow account instead? Or am I missing something huge?
I'm speaking to a lender and going over some numbers, and property taxes will add to much every month...
No you can't. Lenders aren't allowed to keep too much in the account. Many times at closing you'll notice an aggregate adjustment where they actually credit some of the money back that they tried to collect. They don't want too much money, and they'll send it back to you if you do that.
Plus, it's a non-interest account so why would you want to give them all your money to hold without trying to make something on it over the year?
Well I really just wanted to pay the property taxes off completely to the town, so that way it didn't tack on $350 to the mortgage payment every month. I can't afford the taxes every month, I'd rather just pay it all at once. I'd like the mortgage payment to be as low as possible.
I think it's pretty bad there is no other option, just force you to escrow. I mean, I have the money right now. I can't just pay it? I'm sure the answer is: "Nope, because you might not pay it next year".
If you have the money right now, just save it. If you can't "afford" the mortgage payment every month, you SHOULDN'T HAVE BOUGHT THE HOUSE!
Why would you buy a house you can't afford? There is no difference in saving what you have and paying it monthly, except you're saying you don't have any will power and you think you'll spend it. Don't spend it!
I can't afford the taxes every month, I'd rather just pay it all at once.
Instead of trying to put extra money into an escrow account, why not just put that money into a (separate, if need be) bank account? If you lack the discipline to budget, perhaps you shouldn't be buying a house.
Besides, property taxes are forever--they're not just for one year.
Last edited by jackmichigan; 10-30-2014 at 01:00 PM..
We always pay our taxes and insurance directly, and don't ever have an escrow account. We pay about $500 extra for a mortgage that doesn't require an escrow acct. Ask your lender about this option.
I'm speaking to a lender and going over some numbers, and property taxes will add to much every month...
Thanks!
Quote:
Originally Posted by shadwell10201
Well I really just wanted to pay the property taxes off completely to the town, so that way it didn't tack on $350 to the mortgage payment every month. I can't afford the taxes every month, I'd rather just pay it all at once. I'd like the mortgage payment to be as low as possible.
.
Quote:
Originally Posted by shadwell10201
You're right, thats why I "HAVENT BOUGHT ONE YET!"
You do understand that property taxes are due every year, right? And you also understand that property taxes usually go up every year, right? And you understand that if the school district gets a yes vote on an issue to raise money for technology, security, new buildings, etc., you taxes go up, right?
If you can't afford the taxes each month, you can't afford the house.
I'm with the above posters. I don't understand your thinking on this. You have to pay the taxes every year. If you can afford it in one yearly amount, then you shouldn't have an issue with the escrow account. If you cannot afford the monthly taxes, then you are buying above your means and need to look at a less-expensive home.
Factor in the insurance and taxes into your estimation of whether you can afford. I'd also consider the "murphy" factor and make sure there is an extra sum as miscellaneous repair costs. You never know - water heater, plumbing, electrical. Stuff happens.
Yes, you may be getting it confused with a 1 time sales tax.
Property taxes happen every year just like Christmas.
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