1. What is escrow and why do I need it?
Escrow is a process to pay your home insurance and or property taxes more efficiently!
You make monthly installments into an account held by a third party, which is applied to your insurance and property taxes annually.
This guarantees that annual premiums and property taxes are paid.
The money paid into an escrow account is usually managed by a variety of service providers.
These service providers often include an escrow company, escrow agent, or mortgage servicer.
Generally, your situation will determine what type of service provider will manage your escrow account.
The best part is it makes budgeting easier for you!
And that escrow account acts like a savings account, in that you make a monthly payment towards your insurance and property tax over twelve months, rather than making one large payment!