I've been on both sides—had escrow, skipped escrow. A few thoughts:
- Escrow does simplify budgeting, no surprises at tax time.
- But...you lose flexibility and control over your own cash flow.
- Currently refinancing and debating this exact issue. Leaning toward escrow again, but still weighing pros/cons.
I've been there too—went escrow-free once thinking I'd be all responsible and disciplined...then tax season hit and suddenly I was scrambling to cover the bill. Lesson learned, haha. But you're right about flexibility; it's nice having that cash handy for unexpected expenses. Curious though, anyone ever had issues with escrow companies messing up payments or timing? That's always been my lingering worry.
I hear you on the escrow worries. A few years back, I had a client who went through a pretty stressful situation with their escrow company. They'd been paying into escrow diligently every month, but somehow the company missed the property tax deadline. My client didn't even realize until they got a late notice from the county—talk about panic mode. It turned out to be some internal glitch or miscommunication on the escrow company's end, and while they eventually sorted it out (and covered the late fees), it was definitely nerve-wracking for my client.
Ever since then, I've been extra cautious about recommending escrow companies. Most are reliable, but it's always smart to double-check their track record and reviews before committing. Personally, I still prefer escrow accounts for most buyers because I've seen too many people underestimate how quickly those annual bills sneak up on you. But I totally get the appeal of flexibility and having control over your own funds.
One thing I've wondered about lately is whether anyone's had experience switching escrow companies mid-mortgage. Is that even practical or worth the hassle? Seems like it could be a headache, but if you're stuck with a problematic company, maybe it's worth considering...
Completely agree about being cautious with escrow companies. I've seen similar issues crop up, especially when the escrow is managed by larger institutions where things can slip through the cracks. Switching escrow mid-mortgage is technically possible, but from what I've observed, it's rarely straightforward and often involves refinancing or renegotiating loan terms. Unless the problems are severe and ongoing, it might not be worth the hassle...but if you're consistently stressed, it could be worth exploring.
Had a similar situation a couple years back—my escrow was handled by a big bank, and they kept messing up property tax payments. Thought about switching mid-loan, but after looking into it, seemed like more trouble than it was worth. Ended up just closely monitoring their payments and calling them out whenever something looked off. Still, makes me wonder if smaller escrow companies might be more reliable...anyone had better luck going that route?
