How to pay property taxes from escrow?
Paying property taxes from escrow can be a convenient and hassle-free way to ensure that your taxes are always paid on time. Here’s how you can do it:
1. Understand the escrow process: When you have a mortgage, your lender may require you to pay into an escrow account each month along with your regular mortgage payment. This account is used to cover expenses like property taxes and homeowners insurance.
2. Confirm your tax payment schedule: Make sure you know when your property taxes are due each year. This will help you budget and plan accordingly.
3. Assess your escrow account: Check your escrow statement to see if there are enough funds to cover your upcoming property tax bill. If not, you may need to adjust your monthly payment.
4. Contact your lender: Reach out to your lender to confirm the amount of your property tax bill and how it will be paid. They can provide you with the necessary information and guidance.
5. Monitor your account: Keep an eye on your escrow account to ensure that your property taxes are paid on time. You can usually do this through online banking or by contacting your lender.
6. Stay informed: Stay up to date on any changes in your property tax bill or escrow account. This will help you avoid any surprises or potential issues.
7. Review your annual escrow analysis: Your lender will conduct an annual escrow analysis to determine if your monthly payment needs to be adjusted. Make sure to review this document carefully.
8. Plan for potential increases: Property taxes can fluctuate over time, so be prepared for a possible increase in your tax bill. Adjust your budget accordingly.
9. Keep your contact information updated: Make sure your lender has your current contact information so they can reach out to you if needed regarding your escrow account or property taxes.
10. Understand any escrow shortages or surpluses: If your escrow account has a shortage, you may need to make up the difference. On the other hand, a surplus could result in a lower monthly payment.
11. Consider setting up autopay: To ensure that your property taxes are always paid on time, consider setting up autopay from your escrow account. This can help prevent any missed payments.
12. Seek assistance if needed: If you have any questions or concerns about paying property taxes from escrow, don’t hesitate to reach out to your lender for help. They can provide you with guidance and support throughout the process.
Paying property taxes from escrow doesn’t have to be a complicated process. By understanding how it works and staying on top of your account, you can ensure that your taxes are always paid on time and avoid any potential issues.