Due Date

• Property taxes in most areas are due twice a year. The homeowner receives a tax bill once a year, and the lender receives a copy. The tax changes from year to year based on the assessor's estimate of the value of your home, and the tax rate for the following year, as set by the county recorder's office. Depending on your arrangements or the requirements of your lender, you may pay taxes on your own as a lump sum or pay them through an impound account.
  
  

Impounds

• An impound account is set up if your property taxes are to be collected each month. Your most recent property tax bill is divided by 12, and the amount is added to your monthly mortgage payment. The lender will pay your property taxes when they are due. If your taxes increase, your mortgage payment is adjusted for the following year, and you are notified by mail. If you are required to have an impound account, the lender will usually require two months payment in advance so that it will have sufficient funds to pay the tax when it is due.
  
  

Required Impounds

• There are certain conditions where you do not have a choice regarding an impound account. For example, if your loan exceeds 80 percent of the appraised value of your home, or if you get an FHA or a VA loan, your lender will impound your taxes each month. Some lenders will offer a small reduction in the interest rate of your loan if you agree to have taxes impounded when it is not a requirement of the loan.
  
  

Conclusions

• The actual due date for taxes varies by county. It is usually around April and December, and the amount due is usually about one-half of the total bill. Some counties split the total differently and require a larger amount on one of the payments. This is not a problem if you are paying into an impound account, because the lender splits the entire bill into 12 equal payments. Consequently, even if you have the choice, you may find it more convenient to pay taxes monthly into an impound account rather than larger sums twice per year.