This real estate video is about escrow accounts and how they relate to your monthly mortgage payment. Your escrow account is an account that holds money that you’re paying into every month and is due to other people as a lump sum. A good example of this is your taxes. You can set up an escrow account and pay 1/12th of your tax bill to your escrow account every month and then transfer the entire years account balance at the time that your yearly tax bill is due. A potential downside to escrow accounts is the opportunity loss of interest earning income.
Broker/Owner of Market Experts Realty & The Todd Tramonte Home Selling Team
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