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What is an Escrow Account? Find out
 
Many times during the home buying process certain words or topics will come up that you are not familiar with.  One of most common topics I see come up is an Escrow Account.  The short definition is that your Escrow Account is an account your mortgage company has to hold your taxes and insurance in.  If you are “Escrowing” then in each of your mortgage payments will be 1/12th of your yearly real estate taxes and home insurance bills.  So that when those bills come due, the mortgage pays them. 
 
With an escrow account can come other questions, so I wanted to go over the random questions and topics that I have seen come up when someone has an escrow account:
 
Do I have to have an escrow account?- The long answer to this is , on a FHA, VA or USDA loan you must have an escrow account.  If you do a conventional loan you can choose to waive your escrow account usually for a fee, if you are putting down a down payment of 20% or more.  Or if you decide to do two mortgages, such as an 80/15, 80/10, etc.
Why am I paying ... more

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