Property Taxes Paid by Bank ?

NEW -> Contingent Buyer Assistance Program
yes, most banks give you the option of using an escrow account. unless your lender requires it (most govt sponsored loans such as FHA, VA, CalHFA), it's up to you.



these are basically low-yielding savings accounts. i would check that the acct is fdic insured.
 
i dont know whether they're insured or not. it probably depends on the loan servicer. its a good question though. in any case, escrow accts have to be reviewed annually and any excess in your acct above $50 has to be returned to you. you wouldnt want more in that acct than what's needed to cover your prop taxes anyway. you can also use escrow accts to manage insurance payments.



to answer your question about whether they're more common these days, typically the more risk in the loan the more likely the bank will require an escrow account. its a good way for them to <em>keep an eye </em>on the borrower.
 
If you put more than 10% down say 10.1% down then you have the option of having an impound account or not. I always tell people even with more than 10% to impound because it is a no brainier. If you are not a good saver or not good with money never opt to pay the taxes yourself as they are due twice a year and if you have not saved for it credit cards and equity lends end up paying this bill. Not a good thing.
 
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