Wednesday Hump Day

iVillage Member
Registered: 12-22-2013
Wednesday Hump Day
238
Wed, 02-19-2014 - 9:44am

1. If you own a home, do you have your homeowners taxes in your mortgage or do you pay separately?

2. Do you do anything for St. Patrick's Day?

3. What is one of your guilty pleasure TV shows?

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iVillage Member
Registered: 12-22-2013
Thu, 02-20-2014 - 11:45am

That's curious. Why don't you feel the same way about the Federal Gov't when you overpay your taxes to get a refund?

We have a different type of situation with taxes so can't speak about that. I personally don't like to have to give my mortgage company hundreds of dollars every year (one year they needed $700) so they can have a cushion. 

iVillage Member
Registered: 12-22-2013
Thu, 02-20-2014 - 11:45am

Especially since my taxes have gone up each year about $200 so why do they need to hold an extra $500 of mine?

iVillage Member
Registered: 03-22-2013
Thu, 02-20-2014 - 11:46am

jamblessedthree wrote:
<p><blockquote class="quote-msg quote-nest-1 odd"><div class="quote-author"><em class="placeholder">blackandwhitemolly</em> wrote:</div>&lt;blockquote&gt;&lt;div style="font-weight:bold"&gt;&lt;em&gt;jamblessedthree&lt;/em&gt; wrote:&lt;/div&gt;You already have shared a lot of details about your house. Escrow is off limits? Lol.&lt;/blockquote&gt;&lt;p style="font-size:13px; text-align:left"&gt;&lt;/p&gt;&lt;p style="font-size:13px; text-align:left"&gt;Details about my house are not off limits.  My finances, which include the terms of my mortgage, are.  I realize that's likely far too complex a differentiation for you to make, but your inability to grasp the difference between a discussion of my home and a discussion of my finances isn't really my problem.&lt;/p&gt;&lt;p style="font-size:13px; text-align:left"&gt;&lt;strong&gt;NO ONE asked dollar amounts. Not sure why escrow is a personal subject. <strong>I personally think it is a bad idea to have it in a mortgage as the mortgage company is making interest on your money, not you</strong>.&lt;/strong&gt;&lt;/p&gt;</blockquote></p><p>I've heard that as a reason why people DO NOT escrow and it makes a lot of sense. I guess the interest I get to report includes what sits in escrow, What little that is, Lol. </p>

If, by "I guess the interest I get to report" you mean, the interest deducted from your taxes, that would not be correct.  The interest you are reporting is the interest you paid on the mortgage over the past year.  The mortgage payment itself consists of interest and capital.  the interest paid is deductible.  The interest that a mortgage company may make on the escrow is the interest earned while the escrow money was invested in short term investments until it is withdrawn to pay the taxes (and any other payment escrowed).  They are two separate sources of interest; you are only reporting on the interest you paid; you didn't pay interest on the money in escrow.

iVillage Member
Registered: 12-22-2013
Thu, 02-20-2014 - 11:46am

Oh, grapes, I'm not interested in your finances and I don't think that's the direction the op was going either. I am sorry you felt the question was so invasive.

Exactly. 

iVillage Member
Registered: 03-22-2013
Thu, 02-20-2014 - 11:47am

blackandwhitemolly wrote:
<p><span style="font-size:13px; text-align:left">I will say this, I have no objection to my mortgage company making a profit on my mortgage, since that's the only reason they lent it to me in the first place.  </span></p><p><strong><span style="font-size:13px; text-align:left">I don't like having to find hundreds of dollars every year so they can have a "cushion". Shrug.</span></strong></p>

That's fascinating, but I wasn't talking about escrow.

Avatar for jamblessedthree
iVillage Member
Registered: 10-23-2001
Thu, 02-20-2014 - 11:48am
Yep, which is the reason why I'd rather my bank just sit on the escrow and pay it themselves when/where applicable, You are more disciplined than I doing that yourself.

 


 


iVillage Member
Registered: 12-22-2013
Thu, 02-20-2014 - 11:48am
blackandwhitemolly wrote:
<p><span style="font-size:13px; text-align:left">I will say this, I have no objection to my mortgage company making a profit on my mortgage, since that's the only reason they lent it to me in the first place.  </span></p><p><strong><span style="font-size:13px; text-align:left">I don't like having to find hundreds of dollars every year so they can have a "cushion". Shrug.</span></strong></p>

That's fascinating, but I wasn't talking about escrow.

Well they are making a profit off your escrow too. If my taxes went up $200 for the year, they were making a profit off of the extra $500 they claimed they needed for a cushion.

iVillage Member
Registered: 12-22-2013
Thu, 02-20-2014 - 11:49am

Yep, which is the reason why I'd rather my bank just sit on the escrow and pay it themselves when/where applicable, You are more disciplined than I doing that yourself.

I just put the amount each week in my bank account and then pay it twice a year. I can increase the amount by how much I am paying and not have a bill for hundreds of dollars once a year that is WAY over the amount my taxes have gone up.

Avatar for jamblessedthree
iVillage Member
Registered: 10-23-2001
Thu, 02-20-2014 - 11:59am

You are an open book sometimes, I mean given that you have shared your financials (i.e. salary) before on this board but find a yes or no question about escrow off limits is really really weird. Sorry, I don't trust your opinion about financials. 

 

 

 

 

Avatar for jamblessedthree
iVillage Member
Registered: 10-23-2001
Thu, 02-20-2014 - 12:01pm

blackandwhitemolly wrote:
<blockquote><div style="font-weight:bold"><em>blackandwhitemolly</em> wrote:</div>&lt;p&gt;&lt;span style="font-size:13px; text-align:left"&gt;I will say this, I have no objection to my mortgage company making a profit on my mortgage, since that's the only reason they lent it to me in the first place.  &lt;/span&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;&lt;span style="font-size:13px; text-align:left"&gt;I don't like having to find hundreds of dollars every year so they can have a "cushion". Shrug.&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;</blockquote><p style="font-size:13px; text-align:left"></p><p style="font-size:13px; text-align:left">That's fascinating, but I wasn't talking about escrow.</p><p style="font-size:13px; text-align:left"><strong>Well they are making a profit off your escrow too. If my taxes went up $200 for the year, they were making a profit off of the extra $500 they claimed they needed for a cushion.</strong></p>

Well, if you follow the chest's logic you should not be collecting a refund at the end of the year then either.  I guess I'm a little more consistent, I mean I let my bank sit on my escrow and I also let the IRS sit on my money and collect a refund at tax time too.  Sure beats spending money on slimey brokers, Lol.

 

 

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