Ask Terry Questions Mortgage payoff next steps

Mortgage payoff next steps

By Terry Savage on October 03, 2023 | Wild Card

We just paid last mortgage payment..what type of account should I setup to pay taxes and home owners insurance?

Terry Says

First, congratulations! That’s a huge accomplishment. Set up a money market account at your bank, and have an automatic transfer from your checking account each month. Total up last year’s tax bill and insurance bill, and divide by 12 to get the monthly amount to transfer. And, tip: Add maybe $200/month because tax bills are likely to go up and you want to have some extra money in that account!!
Also, make sure that your property tax and insurance bills now come directly to YOU. They were likely sent to the mortgage company. So make sure your name and address will be on the bills going forward.



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