Mortgage escrow is a pretty simple concept. It’s money that you (or a mortgage client) prepay to cover your real estate taxes and homeowners insurance.
Why Have a Mortgage Escrow Account?
There are two great reasons to use an escrow account for your mortgage. First, escrow accounts make it extremely easy to make sure your insurance and taxes are up to date on your property. Why worry about it? Let your mortgage company worry about it. Second, the fact that your taxes and insurance are always up to date keeps your insurance from lapsing and keeps you from losing your property due to a failure to pay taxes.
I don’t want to spoil the rest, so check out this great video and let us know what you think. Would you ever consider not having an escrow account and paying your taxes and insurance on your own? If so, why? We’d love to know. If you like what you see, subscribe here.
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