How To Un-Impound Your Property Taxes & Homeowner Insurance
Click here to find out when your area’s property tax is due.
For my Los Angeles peeps, it’s due November 1st but it’s not late until December 12th. So you have plenty of time (six weeks) to get $500 Tax-Free Paying Your Property Tax.
Some folks have their property tax, and sometimes their homeowner insurance, rolled into one big bill with their mortgage. That is called an “impound” or “escrow” account.
- Some folks like it because they just write one check a month instead of a few extra per year.
- Some folks had to set up an impound account as a condition of getting their mortgage.
- Some folks got a rate reduction if they went along with the impound.
It is possible to get your impounds un-impounded. I speak from experience. A few years ago when I refinanced my home I somehow accidentally had my property taxes impounded. Well, that didn’t sit well with this control freak. I also didn’t cotton to someone else getting interest on my money until they paid the bill months later when it was actually due.
To remove the impound, I simply called the mortgage servicing company (the place where I sent the check) and asked to have it removed. They obliged.
I dunno about you, but my mortgages have never stayed with the bank that did my original loan. So what was once a condition of getting the loan, even possibly a lower rate on the loan, may no longer be the case for you.
Again, I get the convenience of one big monthly bill. But know that you are losing out on some free cash that I wrote about in $500 Tax-Free Paying Your Property Tax.
Email me if you have any questions. Full disclosure: I may get a commission if you use my widgetty thing below, so… Thanks!