Property Tax Impound Schedule

Conventional fixed-rate mortgages: This traditional, “tried and true” mortgage option is a loan with a constant interest rate and level, equal payments during a set period of time — most commonly, 30 years. The biggest selling point of fixed-rate loans is predictability, and they are particularly suited to people with steady incomes.

Adjustable-rate mortgages (ARMs): As the name implies, the interest rate on an adjustable-rate mortgage changes throughout the term to stay current with the present interest rates. ARMs are most popular when rates are relatively high and appear to be dropping and when the difference between the ARM and the fixed-rate is greater than 2 to 3 percent. Different lenders offer variations in the front end of their ARM plans, such as the points you pay or discounted initial rates.

To make a useful comparison of an ARM rate, consider the index upon which the rate is based, the margin or spread between that index and the rate paid, and the intervals at which the rate and payments are adjusted.

Note: Always look at the index plus the margin when comparing ARMs. The larger the margin, the less likely the rate you pay will go down, even if the interest rates drop.

Due Date: February 1st

Delinquent Date: April 10th at 5:00 PM

Period Covered: January – June