What Is An Escrow Account? Do I Need One?

 

Shopping lenders for your new home purchase in the Tampa Bay area? Have you come across the term “Escrow Account” and wondered what it means or if you even need one?

As we show you in this video, an escrow account is an account, established by your lender, to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner’s insurance mortgage insurance (if applicable), and property taxes.

Escrow accounts are a good idea because they assure money will always be available for these payments.

If you use an escrow account to pay property tax or homeowner’s insurance make sure you are not penalized for late payments since it is the lender’s responsibility to make those payments.

At Flagship Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 813.875.1200.

In case you missed it, check out our last Flagship Title post: What Should I Know Before Investing In Real Estate?

 

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