Churchill Properties
Tracey Hutchinson, Churchill PropertiesPhone: (978) 473-9720
Email: [email protected]

Simple benefits of escrow accounts

by Tracey Hutchinson 09/12/2022

Escrow accounts are typically handled by a neutral third-party provider. These providers are often banks whose only interest in the transaction of residential real estate is to ensure materials, funds and other important documents are properly handled and distributed to the appropriate parties.

These institutions typically carry coverage, and if you’re already familiar with or bank with these institutions, you may also be covered under your FDIC insurance allowance.

Your chosen escrow company is usually paid monthly after setup and closing costs have been taken care of.

Monthly payment

Payments made to your escrow account benefit more than just your mortgage payments. In fact, variables such as some homeowners insurance payments, property taxes, monthly mortgage payments and other essential expenses, sometimes based on your locale, can be paid by your escrow company.

By paying into this account, homeowners can send a lump sum payment to their escrow company. That company will then send the homeowner’s monthly payments to the correct establishment, affording you, the homeowner, peace of mind in keeping your monthly payments current.

These payments are often uniform, though they may fluctuate yearly based on company and location.

Escrow account tips

Even though precautions and steps have been taken by escrow companies to ensure their clients’ safety, there are a few tips to consider for your financial health. A major tip is to ensure your payments are being made to the correct account. Every once in a while, you may want to check your statements to ensure all the correct institutions are being paid properly.

You may also want to check with your lender or other financial advisor or loan officer about starting your escrow account and compare the startup costs to ensure you’re choosing the correct institution for your current, and near-future, financial situation.

Escrow accounts are viable sources of managing your finances and payments when it comes to your home. They’re great resources for handling some stickier details and can help put your mind at ease when managing your monthly budgets.

About the Author
Author

Tracey Hutchinson

A home is not a home because of its room dimensions or the color of the walls. It is about how you feel when you walk through the front door and the way you can instantly envision your life unfolding there. This is about more than real estate. It is about your life and your dreams. You deserve to be represented by a professional who knows the local market, cares, puts you first, communicates and negotiates well, is knowledgeable, competent, honest and accessible! I utilize the latest technologies, market research and business strategies to exceed your expectations. More importantly, I listen; that means finding solutions that are tailored to YOU, and I won't stop until you are110% satisfied! If you are looking for someone experienced, positive, proactive, and patient who provides exemplary full service we may be a good fit. There are many Realtors out there and working with the right person for you will make the complicated process of buying and selling your home easier and more enjoyable.