Home Buying in Brooklyn>Question Details

divalicious1…, Home Buyer in Brooklyn, NY

can the taxes on a property be paid separately from the actual mortgage(can the full property tax be paid in the beginning of the year?

Asked by divalicious1124, Brooklyn, NY Wed Dec 5, 2012

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Hi divalicious1124,

Yes, they can. You need to let your lender know you do not want them impounded. The property tax bill will then be mailed to you and you will pay them, not your lender.

Shanna Rogers
SR Realty
1 vote Thank Flag Link Wed Dec 5, 2012
Dear divalicious1124:

The answer to that question can vary on a case by case basis. You have some good answers here so let me give you some tips....

a) Why pay the whole thing at once if you do not have to? Wouldn't you rather keep some money in your own bank account to collect interest (however little that may be) rather than handing over the money sooner than you need to?

b) Some people would rather the bank pay it because they divide the expense to a monthly basis rather than a quarterly basis which would be the case if you did pay them yourself. I liken this to when a Brooklyn homeowner opts to be billed "on a budget" by Nation Grid for their gas usage rather than solely by their monthly use. It even out the payments over the course of the year so as to make for easier budgeting.

Aside from that, to get the correct answer to your question, speak to your banker. If I can be of further assistance, contact me direct. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Dec 6, 2012
Hi divalicious1124,

You will need to wait until you receive the tax bill - usually 2 per year. The county may do reassessments yearly (or they may not) to calculate the amount due. Just set the money aside until you receive the tax bill.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Thu Dec 6, 2012
It can be done, therefore ask your loan officer the question...
0 votes Thank Flag Link Wed Dec 5, 2012
This is done on a regular basis. In fact I have done this on my personal residence. However, there are stipulations on this.
1. This is available on Conventional Loans.
2. The LTV (Loan to Value) must be below 80%
3. The lender will charge you .25% in discount points if you do not escrow the funds. The reason for this is because the bank will not be able to make interest on the escrow balance until the escrows are paid. (Yes the bank "earns" interest on your money when they have the use of your money).

Cedric Johnson
Prospect Mortgage
0 votes Thank Flag Link Wed Dec 5, 2012
Yes, you can opt to pay your taxes outside of the mortgage.
0 votes Thank Flag Link Wed Dec 5, 2012
Thanks Shana, just to confirm it can .example....... if I purchase the property and close in January 2013 I can pay off my taxes for that year all at once and don't have to do it monthly?
0 votes Thank Flag Link Wed Dec 5, 2012
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