13 Mar 2024
By RESCO Realty

The Role of Mortgage Escrow Accounts in Property Tax and Insurance Payments

Home Mortgage Tips, ,
A mortgage escrow account, also known simply as an escrow account, is a financial arrangement set up by a mortgage lender to manage and disburse certain payments related to the property on behalf of the homeowner. The purpose of an escrow account is to ensure that essential expenses, such as property taxes and homeowners’ insurance, are paid on time. Here's how a mortgage escrow account works: Creation of Escrow Account: When you obtain a mortgage loan, your lender may require you to establish an escrow account. This account is typically separate from your mortgage loan account. Monthly Payments: As part…
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07 Feb 2024
By RESCO Realty

Understanding, Avoiding, and Mitigating Early Mortgage Repayment Fees

Home Mortgage Tips, ,
Mortgage prepayment penalties are fees charged by lenders when borrowers pay off their mortgages before the agreed-upon term. These penalties are designed to compensate lenders for potential lost interest income and can significantly impact borrowers who want to pay off their mortgages early. Here's what borrowers should watch out for and how to avoid or mitigate prepayment penalties: Understand the Terms of Your Mortgage Agreement: Before signing any mortgage agreement, carefully review the terms and conditions related to prepayment. Look for information about prepayment penalties, including how they are calculated and under what circumstances they may apply. There are generally…
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24 Jan 2024
By RESCO Realty

How Do Mortgage Lenders Decide How Much You Can Borrow?

Home Mortgage Tips, ,
When you visit your lender to get a mortgage for your home, they will tell you the maximum amount that you are allowed to borrow. But how do they reach this total and what factors do they take into consideration? How do they determine that one borrower can take on a bigger mortgage than the next? This decision is made by mortgage companies by considering a wide range of factors, including your credit information, your salary, and much more. Here Are Some Of The Common Ways That Lenders Determine How Much You Can Borrow: 1. Percentage Of Gross Monthly Income Many…
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