Homebuyer Guide

Do you need an escrow account?

An escrow account is a convenient account that allows borrowers to accumulate money during the year for annual, home-related expenses, such as property taxes and insurance. Most lenders offer this service, and many require an escrow account on certain types of loans and in certain higher risk situations.

When an escrow account is required, you will be making monthly payments toward your taxes and/or insurance as part of your regular monthly mortgage payment. When the amounts are due, the bills will be sent directly to the lender, who will see that they are paid on time.

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