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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Escrow
Could someone please explain to me what this is exactly and how it affects the monthly mortgage payment? If at all? Thanks in advance!
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Posted 3/27/06 9:35 PM  |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Escrow
Basically, it's like a savings account that your mortgage company has for you in addition to your mortgage. They hold extra money in it year round to cover any payments they make on your behalf. You can pay a variety of things this way, like town and school taxes, homeowner's insurance, hazard insurance (like flood insurance). As these payments go up, the amount the mortgage company requires to hold in escrow for you goes up. They hold a little extra on top of your estimated payments, in case something (like your school taxes) come in higher than projected. As they get notified that your taxes or insurance is going up or down, they adjust your monthly payment accordingly.
If you choose to pay some or all of these bills yourself, you won't need to keep money in escrow.
Message edited 3/27/2006 9:50:46 PM.
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| Posted 3/27/06 9:49 PM |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Escrow
sorry double post
Message edited 3/27/2006 9:50:22 PM.
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| Posted 3/27/06 9:49 PM |
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jaysee00
LIF Adult
Member since 3/06 1647 total posts
Name:
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Re: Escrow
Thank you for your response. Do the closing costs include any of this amount?
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| Posted 3/27/06 9:56 PM |
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