*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
There's a few of weird, and sometimes unfamiliar terms that mortgage loan officers use when speaking to borrowers about their individual loans. One of those terms that may be unfamiliar to first time homebuyers is called an escrow account.
So what is included in an escrow account? What does it do?
It might be easier to think of an escrow account as another form of a checking account.
A checking account is a bank account that most people put money into, so that they can use that money to purchase every day items. An escrow account is used in a similar fashion. Money is put into the escrow account by the borrower, and then taken from that account by the servicer, in order to make payments on the borrowers homeowner's insurance, mortgage insurance and property taxes each month.
This is a convenient way for a borrower to make their monthly payments, because their mortgage (principal and interest), taxes, and insurance are all paid to the correct entities on time.
If you have any questions about what an escrow account is, how it works, or any other mortgage related questions, please feel free to reach out to me and lets discuss more.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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