Make Property Tax Payments Easier

Last week, we sent out some info regarding property taxes and got a TON of responses. I mentioned an impound account, and many people replied, asking what that is. Sooooooo... 

If you have a mortgage, an impound account is a way of helping you pay your property taxes and homeowners' insurance without the stress of writing those big, twice-a-year checks.

Here’s how it works. Each month, when you make your mortgage payment, part of it goes toward your loan, and part gets set aside into a special account managed by your lender. Then, when your property taxes or insurance come due, the lender pays them for you using that money. It is like a built-in savings plan for your property taxes and insurance.

Instead of scrambling to pay large bills twice a year, you are paying a twelfth of those costs every month, making budgeting a lot easier. It is also a great safeguard. No missed deadlines, no penalties, and your coverage always stays up to date.

The only thing to keep in mind is that your monthly payment can change a bit from year to year if your property taxes or insurance go up, but your lender should always give you a heads-up before that happens.

If you don't have an impound account, contact your lender and ask them to set it up for you. Pretty easy stuff! Have a great week!