This is the first year that my husband and I are paying Real Estate Tax. It was $1400. We thought that seemed like A LOT. A friend said that it should be covered by ESCROW. I have no idea wha ESCROW is. I put extra into our mortgage every month, but I put it towards the principal. Should I have also been putting extra into an ESCROW.
2007-11-30 01:42:36 · 2 answers · asked by Emily 3 in Business & Finance ➔ Taxes ➔ United States
Typically when you get a mortgage the lender also requires you to set up an escrow account to pay for property taxes and home owners insurance. The last thing the bank wants is for your property to taken by the government because you didn't pay the property tax. Check with your lender to see if this was ever set up, and if not set one up.
2007-11-30 01:48:15 · answer #1 · answered by countryguyhfc 5 · 0⤊ 0⤋
Your mortgage may or may not have included an escrow provision. Escrow monies are held by the lender and used to pay property taxes, property insurance and similar costs. If you do not have such an account to which you pay in addition to your regular payment, you're going to have to cough up the property tax when due.
$1400 for property tax is peanuts where I live. My annual property tax on my house is about five times that amount.
2007-11-30 03:00:21 · answer #2 · answered by acermill 7 · 0⤊ 0⤋