Should You Choose Escrow?

Whenever you are going through a real estate transaction, you will have the choice to utilize an escrow service. If you are considering using escrow, there are a number of things that you will need to consider. 

Escrow

Whenever you get a mortgage on a piece of real estate, your mortgage lender is going to give you the option of using an escrow account. This means that they are going to add a certain amount of money to your mortgage payment and put it into an escrow account. This money will then be used to pay for taxes and insurance on the property.

Should You Use Escrow?

In most cases, it will be to your advantage to use escrow. When you utilize an escrow account, you will not have to worry about physically making your property tax payment every year. You will also not have to worry about paying your homeowners insurance policy premium. Making one payment every month is going to be a lot easier for you. In addition to convenience, you can also save some money in certain cases. Many lenders want you to use escrow so they will charge you a certain percentage if you choose to avoid escrow accounts.

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