i recently baught a home and my monthly morgage statements has a principle balance and an escrow balace.... is it good to have a negative balance, positive, or 0.? please help. FIRST TIME BUYER!
2006-07-15 15:48:29 · 16 answers · asked by mtsosie78 2 in Business & Finance ➔ Personal Finance
The institution that holds your mortgage wants to ensure that you are paying the taxes/insurance/other non-mortgage expenses on the house. So, they estimate what the total costs are for these elements and divide that cost over the payment schedule for a year, adding the cost to each payment.
For example, if the bank wanted to ensure that you paid your land taxes and those taxes were $12,000 for the year, they would add $1000 per month (assuming a monthly payment schedule) to your mortgage payment. When the tax bill comes due, the bank would pay the bill from your escrow account.
Generally speaking, there's no 'good' or 'bad' escrow balance, it merely represents how much the bank is holding (in escrow) to pay off planned liabilities against the property. Money in your escrow account does accrue normal interest, like any savings account.
2006-07-15 15:59:52 · answer #1 · answered by Joe Rockhead 5 · 8⤊ 0⤋
Escrow Balance
2016-12-08 23:01:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Define Escrow
2016-10-31 02:06:25 · answer #3 · answered by ? 4 · 0⤊ 0⤋
It's always good to have a positive or 0 balance in escrow. Negative means you owe and the mortgage company will make an adjustment where your monthly amount for taxes and insurance will be higher to help cover the cost you are behind
2014-11-12 06:03:01 · answer #4 · answered by Sondra M. B 1 · 0⤊ 0⤋
the escrow balance is the amount of money that the mortgage company is holding to pay your property taxes, homeowners insurance, and/or mortgage insurance. you contribute 1/12 of the cost each month and when the bill comes due your mtg company pays it for you. A negative balance is not good but don't worry, your company will adjust it so that in a year your account will balance. If you have more money in the account than the state (or federal) set maximum (like 2 months PITI or something)you will get a refund check at some point/
2006-07-15 15:54:46 · answer #5 · answered by a_lo 2 · 3⤊ 0⤋
Yoy should always have a + escrow or 0 ! An escrow is a set aside account for paying insurance or taxes as they become due ! A portion of your monthly payment is placed into this account to cover these items !! Saves you from personally having to remember to pay them !!
2006-07-15 15:56:32 · answer #6 · answered by retepsumdac 3 · 1⤊ 0⤋
I m with CHASE bank.
This is the second consecutive year that I need to pay a balance of more than 1000.00 in April or my monthly payments will increase. Last year, the bank said that it was because of an increase of the fees for my home insurance. This year, they re saying because I had a negative escrow and not because of my home insurance because I ve already call them. Is this legal? Can that happen?
Lucy
2015-04-13 17:29:57 · answer #7 · answered by Luz 1 · 1⤊ 0⤋
your going to want money in your escrow account, especially if that is how your paying your taxes, but not to worry even if it is 0 with time it will increase. I just bought my first house 2 months ago, and i started out with a balance..it pays school, and property and home owners insurance.
2006-07-15 15:53:20 · answer #8 · answered by MyDreams2Be 5 · 1⤊ 0⤋
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RE :What is an escrow balance?
i recently baught a home and my monthly morgage statements has a principle balance and an escrow balace.... is it good to have a negative balance, positive, or 0.? please help. FIRST TIME BUYER!
8 following 14 answers
2016-11-10 12:26:44 · answer #9 · answered by ? 6 · 0⤊ 0⤋
This Site Might Help You.
RE:
what is an escrow balance?
i recently baught a home and my monthly morgage statements has a principle balance and an escrow balace.... is it good to have a negative balance, positive, or 0.? please help. FIRST TIME BUYER!
2015-08-06 09:33:45 · answer #10 · answered by Anonymous · 0⤊ 0⤋