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What are escrow items?

April 26, 2017escrow items

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What are escrow items?

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At closing, mortgage lenders generally collect funds to ensure the payment of two to three (2-3) months of homeowners insurance and real estate property taxes. In addition, they collect one month of insurance and tax payments every month when you make your monthly payments. These funds are placed into a non-interest bearing escrow account maintained by the lender for your benefit. When your next insurance and tax bills come due, the lender will make payment of those bills from the escrow account.