Escrow Archives

12 Mar 2025

Homebuyer’s Guide to Pre-Paid Costs

Home Building TipsCustomer Education, Escrow, Homebuyer

Buying a home is an exciting adventure, but it’s crucial to understand all the financial aspects involved to make the process smoother. Beyond your down payment and closing costs, there are several pre-paid costs that you’ll need to address at closing. These pre-paid costs are essential to consider as you plan your home purchase. Here’s a comprehensive guide to help you understand these costs and prepare effectively. What Are Pre-Paid Costs? Pre-paid costs are expenses you’ll need to pay upfront at closing, in addition to your down payment and closing costs. These costs are designed to cover certain future expenses…

A Comprehensive Guide to Explaining Escrow Accounts

Homebuyer TipsEscrow, Home Refinancing, Real Esate

Whether you're a first-time homebuyer or a seasoned homeowner considering a refinance, the term "escrow account" often looms as a source of confusion. Yet, understanding the ins and outs of escrow accounts is crucial for managing your homeownership responsibilities effectively. In this article, we'll address some common questions and concerns regarding escrow accounts to shed light on their importance and functionality. What is an Escrow Account? Escrow accounts, sometimes referred to as "impound" accounts, serve as a financial mechanism to facilitate the payment of property taxes and homeowner's insurance. Typically, lenders require homeowners to contribute a portion of these expenses…

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

Home Mortgage TipsEscrow, New Home, Property Taxes

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…