Home Buying in Barryville>Question Details

Lynne, Home Buyer in Shohola, PA

How do we determine if using an impound account or paying bills seperately on our own is best for us?

Asked by Lynne, Shohola, PA Tue Sep 11, 2012

We are first time home buyers with a modest but stable annual income. We live frugally and have no debt.

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Answers

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Understand that most Lender require you to have IMPOUNDS; you will have no choice:

If you do have a choice; I would recommend getting the IMPOUNDS, it is a worthwhile conveniece and missing a tax payment or insurance payment can be serious.

If you are organized to the point of being anal; you probably can handle it. But, historically, most people can let it get out of hand.

Good luck and may God bless
1 vote Thank Flag Link Tue Sep 11, 2012
I'm surprised the lender is even giving you a choice....are you sure that they are?

You're going to be busy new homeowners and the convenience of having the lender be responsible is hard to beat. Money reserved for taxes and insurance needs to be put into a savings account that is government insured, and those are paying what, 1 percent? in interest. So the opportunity cost of the money out of your hands is negligible, but the failure to pay taxes or insurance on time can be very costly indeed.

Karla Harby
Rutenberg Realty
0 votes Thank Flag Link Wed Sep 12, 2012
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