mortgage and escrow

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

Do you think it is smart for people to have an escrow account with their mortgage these days, with the market the way it is. We have our that way and am very comfortable with it, we have a fixed rate. The mortgage holders that have the flexible rates have really been hurting and with the escrow added in it would definately cause even more stress, making the payment higher. what are your thoughts on this?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi jbarto,

I think Escrow is very important and also helpful for the borrowers though he may have to pay some extra money every month but that ensures that all the bills like property taxes, fire and hazard insurance premiums, mortgage insurance premiums etc are paid on time. Escrow Account also helps you to avoid the risk of getting lapse insurance coverage or any delinquent taxes.

Feel free to ask if you have any further questions.

Best of luck,
Larry

sara

Well I have a slightly different view jbarto. I guess it's much easier if you have someone to distribute the payments on insurance premiums and annual taxes..if you have an escrow account, the lender or loan servicer is there to do it for you. Otherwise, one has to be careful about what he needs to pay for taxes and inusrance premiums and tyhe problem is, if he's in an emergency, there are no reserves as in an escrow account to prevent him from being delinquent on taxes or insurance payments.

I feel having an escrow account is all about being more organized.

Take Care

All times are GMT - 7 Hours

Page 1 of 1