Imponding my Property Taxes

Hi helpplease,

If you impound your property taxes, it means you set up an escrow or an impound account with your mortgage company. The lender uses the funds from this account to make payments towards the property taxes and insurance premiums.

I think it is good to impound your property taxes. When you have an impound account with the lender, it's your lender's responsibility to pay the property taxes and insurance. You just need to make sure that you have enough funds in your impound account for your lender to make the payments, whenever required.

Will the lender charge any interest or any service fee to keeep this account?

Taxes and insurance accounts are referred to as impounds or escrow account. When opening a new loan, most mortgage lenders will require reserves of a couple of months. Depending on when the property taxes will be due, the required reserves will vary. Taxes and insurance can be added at any time of the loan term.

They may charge management fees etc.

What would thay charge normally.

Is it percentage of your property tax or is it fixed cost?

Also Can I pay my property taxes by my slef, when it is due, insted of setting up this account?

Thank you