What is an escrow account?
An escrow account (also known as an impound account) is an account established with American Home Mortgage Servicing Inc. to help borrowers pay taxes and insurance premiums for your mortgaged property. Deposits are made to the escrow account through monthly payments made along with the principal and interest amounts due. Note that payments of supplemental tax bills are not paid from your escrow account. Please pay any supplemental tax bills directly to the taxing authority. Please note:an escrow account is not automatically established unless it becomes necessary to add insurance to your property or there is a past due tax bill on your property. In these cases, American Home Mortgage Servicing Inc. will notify you of these changes and advise you of the new required payment amount.
An escrow account is established to help ensure that your taxes and insurance are paid. Part of your monthly payment is deposited into your escrow account. At a later date, the funds in the escrow account are used to pay real estate taxes, homeowner insurance, and any mortgage insurance that may be required for the loan.
An escrow account is an account administered by the lender to pay outstanding real estate tax, insurance and mortgage insurance bills. The borrower is required to deposit an initial amount into the escrow account. Every month when the borrower makes the mortgage payment, a portion of the payment is applied to the account. When the actual real estate tax, insurance and mortgage insurance bills are due, they are paid from this account.
A. An Escrow account is an account established by the lender to pay your property taxes and homeowner’s insurance when they are due. Your monthly payment is divided into principle, interest, taxes and insurance (PITI). The amount for your taxes and insurance is deposited to your escrow account. Keesler Federal Credit Union pays dividends on your escrow account.
Should I refinance? The most common reason for refinancing is to save money. Saving money through refinancing can be achieved in two ways. 1. By obtaining a lower interest rate that causes one’s monthly mortgage payment to be reduced. 2. By reducing the term of the loan, thus saving money over the life of the loan. For example, refinancing from a 30-year loan to a 15-year loan might result in higher monthly payments, but the total of the payments made during the life of the loan can be reduced significantly. People also refinance to convert their adjustable loan to a fixed loan. The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. Fixed loans are very popular when interest rates are low, whereas adjustable loans tend to be more popular when rates are higher. When rates are low, homeowners refinance to lock in low rates. When rates are high, homeowners prefer adjustable loans to obtain lower payments. A third reason why homeowners re
