What are the benefits of paying or not paying property taxes via mortgage escrow accounts?
BENEFITS OF AN ESCROWED LOAN. 1. You don’t have to worry about paying your property taxes every year. The mortgage company is responsible for paying your taxes in such a way that they save the most money (most tax authorities give a discount date for early payment). 2. Slightly better interest rate on your mortgage. An escrowed loan is less risky to the lender. If the loan is escrowed, the lender knows that the taxes will be paid (and the county will have no claim to take away the property). Since the loan is less risky, the lender may have a slightly lower interest rate than a non-escrowed loan. BENEFITS OF A NON-ESCROWED LOAN. 1. If you are not sending one twelfth of your annual tax bill to the mortgage company, then you will be able to gain a slight amount of interest on that money (rather than the money sitting in the mortgage company’s bank account). That being said, some states require that mortgage companies pay a small amount of interest on escrow funds they hold. If your annua
