[Brenda M]

...taxes and insurance, should I pay my own or let them? I owe 36K on my property with 7.95 interest, and I am going to refinance at 4.5. The lender wants to include my property taxes and insurance in the loan. I have always paid the taxes and insurance and I don't trust them to pay on time.They say they will charge an extra .5-1.0 % interest if I don't allow them to include the property taxes and insurance in the loan.Is this normal and how can I get them to allow me to pay my own taxes and insurance with out penalizing my loan?

[~*Mama-of-Two*~]

We just bought our first home and we have this type of loan. The bank puts your tax/insurance money into an escrow account. Towards the end of the year it automatically pays your insurance and taxes for the entire year. They definitely pay it on time, you dont have to worry about that. You can request a statement as proof to ease your mind. You still get to choose your insurance company so you can shop for the best rates. It doesnt cost you anything extra. In your case it will actually save you money since they are lowering your interest rate.