taxes (Conroe: insurance, mortgage, month to)

[tyger7000]

What do you prefer paying taxes at the end of the year or including them in your mortgage?

[predatorprey]

I prefer to have my taxes not escrowed.
I can put it in a short term CD or something and gain interest
Escrow account i believe pays interest but it is very small.

Just have to make sure you save enough for the taxes and not be short by the end of the year.

[Lake Conroe resident]

I do not escrow for a few reasons... The main one is the mortgage co always seems to screw something up and you end up getting a notice in the mail that they want a big check as there's not enough in the account to pay the taxes and insurance or your payments always changing due to insurance and tax increases. The other reason is I like to have control of when my taxes get paid and know that my taxes and insurance are getting paid rather than hoping some employee has done their job and taken care of it. The last of course is you can make some lunch money by sticking it in a short term CD rather than letting the escrow account hold it.. I would say if you know that you are irresponsible and will not save enough $ during the year to cover your taxes and insurance it's a good idea, otherwise it isn't.

[predatorprey]

[quote=Lake Conroe resident;3828873]The last of course is you can make some lunch money by sticking it in a short term CD rather than letting the escrow account hold it..

It is a whole lot more than just some lunch money. =p

[SkyeAnjel]

I escrow so I don't have to worry about it, have never had a problem...

[sunny57]

I'd rather have them escrowed...one less item to worry about. It's my finding people tend to live month to month and factoring the taxes on the front end (in their mortgage payment)works better for them. Because...life happens and if they have access to the $$$... it seems to get spent on other things.

If your getting a mortgage...often, the choice of escrowing taxes is determined by your mortgage company. Much like PMI....Sunny

Originally Posted by tyger7000

What do you prefer paying taxes at the end of the year or including them in your mortgage?

[predatorprey]

Originally Posted by sunny57

I'd rather have them escrowed...one less item to worry about. It's my finding people tend to live month to month and factoring the taxes on the front end (in their mortgage payment)works better for them. Because...life happens and if they have access to the $$$... it seems to get spent on other things.

If your getting a mortgage...often, the choice of escrowing taxes is determined by your mortgage company. Much like PMI....Sunny

That is true, it takes alot of discipline

[Beto]

Originally Posted by tyger7000

What do you prefer paying taxes at the end of the year or including them in your mortgage?

Escrowing is your best bet.

[jimboburnsy]

If you don't have a lump to cover the taxes at the end of the year to put in a CD you can always "self-escrow" by setting up an automatic deduction to an interest-earning savings account (ING comes to mind). It really is just lunch money, though. The ease of escrowing the taxes makes sense to a lot of people, others just don't like the principle of letting the bank have the interest on the tax money.

If the route of (generally) least headaches appeals to you, escrow.

If are disciplined enough to come up with the tax money each year and are bothered by wastefulness, even if it is almost negligible in most cases, its better not to escrow.

[Lake Conroe resident]

Originally Posted by jimboburnsy

If are disciplined enough to come up with the tax money each year and are bothered by wastefulness, even if it is almost negligible in most cases, its better not to escrow.

I think the biggest reason I don't escrow is I like to first know that the taxes got paid ( I had problems with this years ago) and to have control of when they get paid. If you need help on your tax return more in one year vs the other you can decide when to pay and get the deduction for them. The interest really is just lunch money so that's not the driving factor so unless you pay 25K per year in property taxes it wouldn't amount to much more than a nice lunch date out.