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ESCROW?

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Anonymous
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ESCROW?

I am in the process of seeking a mortgage.  The term has been used in many of my conversations with the lender.  What exacttly is escrow and how does it work asfar as mortgage loans are concerned?
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2 REPLIES 2
DallasLoanGuy
Super Contributor

Re: ESCROW?

1/12th of taxes and insurance is added to your payment. at the end of the year the lender will pay those for you out of this fund.
in addition, lenders will require 2-3 months to be held in reserves..... so they will have enough in the account if taxes and/or insurance goes up
Retired Lender
Message 2 of 3
ShanetheMortgageMan
Super Contributor

Re: ESCROW?

Escrow can also be the period of time it takes from the time your offer is accepted until you close on the home/mortgage - called the escrow period.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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