I just got my new mortgage coupon and it says i owe $300 more for escrow... what does this mean? i can't afford that!!
2007-02-22 15:19:52 · 4 answers · asked by fodiane 2 in Business & Finance ➔ Renting & Real Estate
i already paid my taxes also.
2007-02-22 16:00:43 · update #1
escrow is the money to pay your taxes..and home owners insurance too. The mortgage company has a savings account that you pay into each month as part of your mortgage payment. Then they pay these bills when they come due. If your taxes go up....they raise the amount that goes into escrow ( savings)...to cover it. call them and ask for the reason it went up.
2007-02-22 15:47:52 · answer #1 · answered by janetw 2 · 0⤊ 0⤋
Your escrow is an account for, usually, your home insurance and property taxes. If either went up, then you have to put more into your escrow to pay for them. I know how you feel - ours just went up $400 a month.
2007-02-22 15:25:57 · answer #2 · answered by amiranae 2 · 0⤊ 0⤋
That's the money they hold for your homeowner's insurance and property taxes. The bills for those are sent to your mortgage company and they pay them for you.
Most likely they you didn't pay in enough last year to cover the actual bills, so they had to boost it up to cover the higher bills and the shortfall from last year.
They included a statement with the new coupon book that explained all of that and how they arrived at the new amount.
2007-02-22 15:28:39 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Escrow is a legal docu,ment (such as deed), money, stock, or other property delivered by the grantor, promisor or obligor into the hands of third person, to be held by the latter until the happening of a contingency or performance of a contingency or performance of a condition, and then by him delivered to the grantee, promisee or obligee.
2007-02-22 15:27:55 · answer #4 · answered by dondatu 3 · 0⤊ 1⤋