Escrow payments are often waste of money
Sunday, February 25th, 2007That is the proposition at the core of mortgage escrow services, in which lenders collect money on the borrower’s behalf as part of the monthly mortgage payment, then use those funds to pay the borrower’s real estate taxes and homeowner’s insurance, usually twice a year.
Government-insured loans such as those backed by the Federal Housing Administration or the Veterans Administration mandate escrow accounts for borrowers, mostly because they eliminate the risk that a borrower will default on taxes or fail to insure the house.




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