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Escrow Account or pay it yourself?

1,268 Views | 5 Replies | Last: 7 yr ago by SteveBott
jakester03
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AG
Crosspost from Business & Investing board:

I'm below 80% LTV on my home so I'm thinking about requesting removing the Escrow account and letting me do my own taxes and insurance.

The plan is to modify my direct deposit such that my estimated T&I gets deposited into a separate online savings account so that I never see the money.

Anyone else do this? Is there a better place to park that money than a standard online savings acct?

TIA,
Jake
Bassmaster
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AG
I just have a sub account on my regular bank account. Each month, 1/12 of my property taxes automatically transfers over. I don't bother with the insurance. It's a much smaller amount, so I just write the check whenever that is due.
SoTheySay
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S
Out of convenience, escrow. Will happily take anything off my plate.
Baba Ganoush
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AG
What you've outlined is the right way to do it if you're going to go the non-escrow route, but to me it's not worth the effort to manage it myself.
aggiebq03+
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If you work for a company that has an Employee Stock Purchase Program that gives a guaranteed minimum return of 10-15%, this is a good way to "escrow" on your own knowing you'll get a minimum return on the saved money. You'd have to sell the stock as soon as the shares are purchased for you, but I would do this anyway since I don't like owning a large number of individual shares of the company I work for. It's just a convenient way to make some return that occasionally is a much larger return when the stock does well.
ag0207
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AG
I do exactly what you are planning to do. My mortgage company miscalculated my escrow account & I got hit with a surprise "you have to pay x amount for taxes by the end of the month". After that I decided to do it myself.
SteveBott
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AG
I'm starting a new thread on escrow. Pretty complicated and needs a better review.
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