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JenandMikey
life is good =)
Member since 5/07 4216 total posts
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We're so blessed!
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probably a dumb question...
but im new to all this home stuff....what is escrow?...pls explain like im a dumba$$...thanks
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Posted 7/20/07 2:22 PM  |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
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Re: probably a dumb question...
Are you referring to the other threads about tax and insurance?
if so, then escrow is money that the bank holds for you and then the bank pays your taxes and insurance with that money, rather than you paying that on your own.
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| Posted 7/20/07 2:29 PM |
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JenandMikey
life is good =)
Member since 5/07 4216 total posts
Name:
We're so blessed!
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Re: probably a dumb question...
Posted by bicosi
Are you referring to the other threads about tax and insurance?
if so, then escrow is money that the bank holds for you and then the bank pays your taxes and insurance with that money, rather than you paying that on your own.
ohhhhhhhhhhhhh ok.....so now what are the advantages to the bank holding this money?....that u dont have to worry about it monthly?
eta btw yes i was refering to those threads
Message edited 7/20/2007 2:31:43 PM.
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| Posted 7/20/07 2:31 PM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: probably a dumb question...
Yeah, probably the main advantage to the mortgage provider holding the money is that you don't have to worry about making the payments yourself. They also are responsible for late fees if they are late.
The advantage to not having an escrow account is that you can gain interest on the money you set aside for taxes, if you put it in a savings account or some other account. If you use the escrow, the money just sits there, collecting no interest.
We wanted to go for the latter option, but our broker messed up our paperwork and said we wanted escrow. We could have changed it, but it would have delayed the closing and we decided to just get the escrow.
 We were so annoyed with her!
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| Posted 7/20/07 2:54 PM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: probably a dumb question...
Oh, and I was going to add, no a dumb question at all! I don't even think I really knew what equity was when we started this process.
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| Posted 7/20/07 2:55 PM |
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JenandMikey
life is good =)
Member since 5/07 4216 total posts
Name:
We're so blessed!
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Re: probably a dumb question...
Posted by cjik
Oh, and I was going to add, no a dumb question at all! I don't even think I really knew what equity was when we started this process.
awwwwwwwwww thank u very much for that...and for all the info i really need an education when it comes to this stuff....i consider myself an intelligent person and i feel like a dumba$$ when it comes to real estate thanks again!!!!!!
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| Posted 7/20/07 5:37 PM |
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