Does it save money to pay tax and insurance separately or is it better to include in a mortgage payment?

Mellissa
I have good credit and am getting a 6.25% interest rate 30 year fixed refinance on my house. I'm wondering what the benefits of doing tax and insurance on my own are.

Eleanor
It's a matter of personal preferrence. Personally, I prefer to pay my taxes and insurance separately for a few reasons. First, I hate how the escrow mortgage people get things screwed up and it takes an act of congress to get it straightened out (during which time, of course, they want to charge me extra for their screw ups.) Second, I also find that it's a better proposition for me to put the money into a savings account throughout the year rather than putting it into an escrow account because it will earn interest in a savings account. It's not much, but it adds up over 30 years.

Ebony
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Demarcus
You pay the same for your insurance and tax whether you pay them on your own or through a impound account. The good thing about paying them through your mortgage is you dont have to worry about them at later. If you are good at saving money or get bonuses at work etc. then go ahead and pay them on your own. If you dont think you can save enough money each year to pay for them separately then do it through an impound account. Make sure that your lender will not up your interest rate if you decide not to do an impound account. Some lenders will charge an additioanl .25% if don't do it.

Brande
Easier to escrow, you don't pay interest on the escrow and you do not have to worry about paying the other bills separately.

Guadalupe
No..both bills are going to be the same regardless. The loan officers just think a lower payment you see sounds better to you. I personally like it being escrowed, so I don't have to worry about it, especially if its a couple hundred when the bill hits. Good luck!

Chanell
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