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.
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
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.
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).