Unlocking the Mystery of Home Loan Escrow Accounts

INTRODUCTION TO

Home Loan Escrow Account

Interest only mortgages are a type of loan that allows borrowers to pay only the interest on the loan for a set period of time. This type of loan can be beneficial for those who are looking to save money in the short-term.

The only way to unlock the mystery of home loan escrow accounts is to ask the right questions.

Managing Payments and Adjusting Balances in Home Loan Escrow Accounts

Month 1: Set up escrow account

Month 2: Make first payment to escrow account

Month 3: Payment is disbursed to lender

Month 4: Adjustment to escrow account balance

Month 5: Payment is disbursed to lender

Month 6: Adjustment to escrow account balance

Important Considerations when Creating a Home Loan 

Escrow Account

Creating a home loan escrow account is an important step in the home loan process. It is important to consider the amount of money to be held in the escrow account, the frequency of payments, and the fees associated with the account.