Looking to purchase a property in CA in the next 12-18 months. I think you can opt out of escrow in CA? How easy is it to opt out and what are the pros and cons? I’m usually on top of things so I don’t like the idea of forced savings. I also like lower monthly payment so I won’t have to stretch. Also for mortgage hunting, brokers are the way to go?

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If you opt out then you are responsible for taxes and insurance directly . Just need to be disciplined or they creep up

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Escrow options are taken care of by your mortgager. Generally very easy. Some mortgagers provide better deals if you escrow vs not. Some don’t care.

Thanks. Good to know. I’m really disciplined so I don’t see myself missing payments on property tax or insurance. Opting out will allow me to feel more comfortable with monthly payment and even increase my budget a bit 🤗

It’s just my cash flow. 50% of my comp is tied up in bonus/equity so I want to keep my monthly expense relatively reasonable. It’s not as risky as it sounds. I’m targeting $1.5m or so property and in 18mo, I will have saved up $750k in down payment with $150k-$200k left over in cash/stock. Looking at monthly payment, I can easily stretch my budget to $1.6m if I found a dream home.

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