Allowing your bank/lender to set up your property tax escrow account is almost an “automatic” at any closing. Really, this is only necessary for the individual who lacks the discipline or savvy to handle it himself. By closing your escrow account with your mortgage company (this can be done at any time during your mortgage), you begin to become “your own banker.” Set up an automatic withdraw out of each paycheck to be send to a high-interest savings account. Then you, not your banker, are making the interest off of your money for 12 months. While this might only mean 50-75 bucks, the process begins to cause you to approach other areas with a different mindset. This is a simple, yet common, example of making interest work for you.
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