Robert Ebsen

Taxes and insurance. Together they compose the escrow part of the home mortgage.

Twenty-fifteen was the first year we decided to dispense with the escrow part of the mortgage, and to pay the property taxes and homeowners insurance by ourselves.

It was difficult putting money away for those two expenses. The insurance needed to be paid four times a year. The taxes needed to be paid twice a year.  It was a lot of money to put aside, and it was a lot to remember.

Two weeks ago I called the mortgage company. “I give up,” I said. “I want the taxes and insurance back in the escrow.”

Beginning in February, I will be paying more for my mortgage because it will include the escrow account with property taxes and homeowners’ insurance.

That will be great because I won’t have to worry about coming up with extra money throughout the year.

What will I do with the 2015 income tax refund that I specifically planned to use to pay part of the taxes? That is the fun part of all of this. I can lie down now in bed, close my eyes, and think of really wonderful solutions for using the extra money.

Wait. We need to pay down our credit card account, and that 2015 refund will really come in handy. Wait a minute again. I just realized that the 2016 tax refund can be used for more enjoyable things.

In conclusion, I think I have figured out that it’s better to pay more up front (mortgage escrow) when you know your payment will cover things that you worry about paying (T&I).

Hey, analogously, maybe it’s better to do more upfront when you know what you are doing will cover the things that you worried about not doing. If I clean the entire house, I will know that my wife will not complain about not cleaning the windows. But wait a minute again. My wife is a genius at finding things I haven’t done – no matter what I do.

Mr. Ebsen may be contacted at robertebsen@hotmail.com