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HOW IS AN ESCROW ON A MORTGAGE SET UP?

Posted on: 22nd Nov, 2006 09:10 am
HOW IS AN ESCROW ON A MORTGAGE SET UP?
Hi Johnson,

An escrow account will be set up at the time of closing of the mortgage loan. And the lender decides whether you must maintain the account for the purpose of paying for various expenses.

These expenses are like real estate taxes, mortgage insurance premiums, hazard insurance, assessments and such other items.
Posted on: 22nd Nov, 2006 09:43 am
At the time of closing an escrow agreement will be made which will document relevant information such as tax information, legal documents received, payment amount & frequency, disbursement instructions, fees, and rules and regulations of the agreement.

Let me also tell you that you can avoid creation of the escrow account if your loan to value ratio is below 80%. Then you will have to pay your own property taxes and home insurance premiums.
Posted on: 22nd Nov, 2006 11:11 am
Hi Johnson,

Let me advice you that must your review your annual escrow statement to make certain that the lender makes the payment for the escrow items on or before the due dates. This will help to know if the lender is making late payments or not and whether he is charging any penalties to your account.

For more details about Escrow accounts, please go through the article.

Thanks
Blue
Posted on: 22nd Nov, 2006 12:11 pm
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