You pick up the mail one day and, suddenly, you see it: the dreaded property tax bill. Unfortunately, taxes stress you out, and you’re not really certain what, if anything, you’re supposed to do with it. Fear not! In this post, we’ll discuss what steps you should take to resolve your confusion and get your tax bill paid on time.
Did You Escrow Your Taxes with Your Mortgage?
If you’re not familiar with the term “escrow,” it refers to the holding of funds by your mortgage lender specifically for the use of paying taxes and/or insurance each year. This way, rather than dealing with multiple mortgages, tax, and insurance bills, everything is rolled into one total and split across your monthly mortgage payments.
One of the benefits of this is that you don’t have to worry about paying your property taxes manually each year. Instead, your mortgage lender will automatically make a payment from your escrow account. Only if your taxes were previously underestimated will you need to pay any additional money. If it turns out that you’ve overpaid, your lender will usually send you a check for the excess.
If you did escrow your taxes, take the following steps to deal with your tax bill:
- Send a copy of the tax bill you received to your mortgage lender.
- Take a look at the escrow balance and note how much is currently in your escrow. The following month, check the balance.
- Confirm that new balance shows that the amount of the tax bill has been subtracted from your previous escrow balance.
If you did not escrow your taxes with your mortgage payment, there is only one step:
- Pay your tax bill in full per the instructions provided on the bill.
If you’re not certain whether you escrowed your taxes with your mortgage payment, take the following steps to confirm:
- Take a look at your last mortgage statement and look for anything showing an escrow account.
- If you do see an escrow account, check to see if you are escrowing for taxes and insurance.
- If you do not see an escrow account, it is probable that you did not escrow your taxes with your mortgage payment.
- If you’re still not sure after looking at your mortgage statement, call your lender and talk to one of their mortgage professionals to help you determine whether your taxes will be paid by escrow or by you separately.
Make Home Finances Easy with A and N Mortgage
Make your mortgage and escrow process a snap by borrowing with A and N Mortgage. From application to funding, all of our services are managed under one roof, making for a streamlined loan process and quick turnarounds and a great customer experience.
To learn more about our lending services and exceptional rates or to get pre-qualified for a home loan, contact our friendly staff today at (773) 305-LOAN.