There are $60,000 dollar millionaires everywhere.

Is anyone surprised?

Let's see. Dude with your credentials tells me someone is "an interesting guy," I'm imagining an agoraphobic genius who fills his socks with Vaseline and keeps pieces of the cousin he had a crush on in his freezer.

He's a Scientologist

I saw that in his bio. I've never (as far as I know) had the opportunity to get to speak with one of those folks. After spending a little time on xenu.net, I assume it could be a trip.

It wouldn't surprise me if a lot of young people don't have it. But if you're over 30 and don't you have some serious life problems.

And he's not just a casual guy, he's really highly involved.

Hey, to each is own. Billy Sheehan's a Scientologist and he's one of the coolest guys, ever.

Its called an impound account.

Its convienient because you pay it monthly...instead of bi annually.

For example, with a regular account you might have to pay 2000$ every 6 months...and save up for that 2000$ (4000 per year)

with an impound account they just add 300$&change per month month or so to your mortgage every month. (4000 per year)

Its just a choice you make at the time you buy, and you can also undo it or do an impound as needed.

I personally like holding onto my money and just paying bi annually but i completely understand the decision to go impound and pay monthly because there are times when I am like "holy shit , property tax is due in 2 months!!!" and freak out


tl/dr

Monthly payment versus 6 month all at once

Oh, and there's a big difference between borrowing or selling something and not being able to come up with money at all. Not sure it's really fair to lump those two groups together.

Interesting. I never knew about these accounts until today, as I chose to pay out of pocket.

But I just read that Impounds are required on FHA loans, VA loans, and USDA loans. For conventional loans, impounds are generally required if you put less than 20% down.

I've never had any of those types of loans, so I had no idea about the requirements.

I think my property tax bill is paid once a year. I think the insurance premium is the same. I should probably pay more attention, but meh.

yah thats true...

and some of them might impound just for the 1st year..and REQUIRE you have an impound for the 1st year....etc..

An impound isnt bad...

The older I get the less I care about controlling every penny of my money at all times LOL , I actually might use more impounds in the future for convenience and planning sake...especially considering you really cant earn crap with money in the bank anyway these days...so why bother....LOL...


GET OFF MY LAWNN!!!!

ahh yah then i mean you COULD consider an impound for your needs..especially if:

1) saving up for the big once a year payment is a hassle
2) you arent moving any time soon so you wont need to mess with it
3) you arent going to change insurance providers

you might be stoked on an impound to just do it all monthly instead of saving up over a year...or not...

I guess it all depends on how much of a control freak you are LOL...or how much planning and saving you wanna do...

LMAO

Yeah, back in the day, 4% interest on short term CD's through Orange were common, so it made more financial sense to pay twice a year for us (our property tax is quite exorbitant).

There's probably not much benefit right now but if the Fed ever raises interest rates again, it'll be an option.

one other thign too is sometimes you can get a discount (or at least not take a hit) if you use an impound.

For example I got a loan once that had a 1/4 or 1/8 point discount for using an impound account...I could've opted out (I was way over 20% principal) but basically they paid me not to. So if you're doing a refi or purchase it might not hurt to ask if there is a discount.

Thanks! I've got a 3.6% on a jumbo, so I don't know if I'll ever be able to beat that but if so, I'll definitely ask! :)