What is escrow on a mortgage and why is it part of the monthly payment?
In: 1
When you agreed to take out a mortgage on your house, you also made an agreement with your bank that you’d insure it and you’d pay taxes on it. Typically, those bills are due every 6 months or a year; to make it easier, the bank allows you to put a little money aside into an account for these bills so that when the bills are due, you don’t all of the sudden have to come up with money to pay a $3000 bill. The money is already set aside.
Latest Answers