12-08-2008, 02:54 PM
troywellbuilt wrote:
Your mortgage co. paid your taxes already. Paying this $900 now or later will have no effect on real estate taxes paid by you in 2008. This happens every year to me as my escrow review is right before my annual property tax increase, so I am always playing catch up. Interest free, so OK with me.
Yep, which is why there's no tax benefit to pay the $900 in one lump sum. Spread it out over the next nine months.
You may also have the option of eliminating the escrow portion of your house payment and paying the taxes/insurance yourself. This is beneficial if your escrow is generally overfunded because it would allow you to collect the interest on the money you save to pay these vs. your mortgage company collecting it.