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Want to know about escrow account

Posted on: 14th Nov, 2005 02:15 am
I am about to close on my mortgage. I want to know about escrow account. What is it?????
Hi,

It is an account which is maintained by the lender and through this they pay off the obligation such as property tax and PMI on behalf of the borrower.

Thanks,
Samantha
Posted on: 14th Nov, 2005 02:30 am
Hi Angelina,

Welcome to MortgageFit Forums.

As said by jerry escrow account is a account which is created at the time of closing. Through this your lender pays all the bills which are associated with mortgage like PMI, home insurance, real estate tax etc. on your behalf. This type of account is also known as impound account.

For more information on this and related topic please visit our escrow and its significance section.

God Bless You.

Thanks,
Samantha
Posted on: 14th Nov, 2005 02:48 am
does the lender refund the excess money that is left in the account at the end of the year.
Posted on: 21st May, 2008 09:20 am
Welcome adrianne.

I feel the lender should refund the excess money in your escrow account at the end of the year.
Posted on: 22nd May, 2008 04:46 am
adrianne,

No the lender does not refund the money at the end of the year. It will be refunded if you pay off your mortgage by selling the home or refinancing. The lender does however adjust the escrow yearly based on the taxes and insurance payments increasing over the previous year.
Posted on: 23rd May, 2008 08:45 pm
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