Property Taxes... No Escrow Account?

[Tex_Cattleman]

Shouldn't ever be a difference in interest rate if you waive escrow. Many lenders do charge a fee to do so. Typically .125% - .25% (on $300k loan, $360 or $720 respectively). Those who put down less than 20% are required to escrow and also pay PMI. Those loans do have a better interest rate, not related to escrow, but because lender has less risk with you paying the PMI.

Another reason NOT to escrow. If you do, your monthly payment varies year to year as they adjust for changing property taxes. I have seen it over and over where a homeowner sets auto pay - click it and forget it. They get halfway through the following year never realizing their monthly payment had increased. BOOM - late fees, nasty grams and maybe reported lates to the credit bureaus.

[cj7zrcool]

We don't have an escrow account for either. My wife sets aside money throughout the year for these things and we just write the check when they're due.

[Dale Moser]

Our house will be payed off in a year and a half or so, I just can't see the advantage to not escrowing the money for tax/ins...I enjoy simplicity, and taking menial tasks off my plate. I may move that account to my bank, rather than the mortgage company though.

[Pineywoods]

Bringing up a old thread. Hmm.

Just got my 2025 bill Friday.
At 70 years old we are exempt on almost all taxes. They want $36.00 this year. I will call them today...

That's what nubbin' bots do. I've been seeing a lot more of it lately. They are AI posts.