Why does some bankers say its withdrawable?
2007-02-23 14:41:06 · 2 answers · asked by Danny La Cuesta 1 in Business & Finance ➔ Personal Finance
escrow is placed on top of your mortage payment to hold monies for
the once a year payments of homeowners insurance and property taxes
many people find it more convenient to make 12 payments
rather than these two big lump sums
it is withdrawable if YOU take the responsibility to make them
and if you don't pay your taxes - your property can be taken away
from you by tax lein - and you still owe for the mortgage
so that's why I opt for the mortgage company to handle it - at no additional charge
2007-02-23 14:47:20 · answer #1 · answered by tomkat1528 5 · 0⤊ 1⤋
Everything that the guy above me said is true, but he left out one thing. If the homeowner is responsible enough he/she should not have an escrow account because you are putting the money in every month for the bank to hold, and they make the interest on that money not you. The smart thing to do is put the same amount every month in a savings account and earn the interest yourself, then pay your taxes when they are due.
2007-02-23 22:52:10 · answer #2 · answered by Dan V 2 · 0⤊ 0⤋