Kathryn Jean Keller

NMLS# 57801 • Mortgage Loans

  • Home
  • About
    • About Me
    • Privacy Policy
    • Fair Lending Statement
  • Blog
  • Testimonials
  • Resources
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Home Appraisal
    • Home Inspection
    • Credit Score: Information & Tips
    • Mortgage Glossary
    • Mortgage FAQ
  • Contact
  • Apply

Is An Escrow Account Right For You?

September 17, 2021 by Kathryn Jean Keller

Is An Escrow Account Right For You?When someone is looking at purchasing a home, they usually focus on the purchase price of the home and the potential monthly payment. At the same time, there are other costs that need to be included as well. This includes home insurance and real estate taxes.

As a result, many homeowners find themselves asking if they should use an escrow account or not. What do homeowners need to think about and how can they make the right decision?

What Is An Escrow Account?

First, it is important to define an escrow account. An escrow account is an account that contains money for items such as insurance and taxes. That way, homeowners are not blindsided by a major bill at the end of the year. Some people may be required by the lender to have an escrow account, but those who are putting 20 percent down may have an option to use an escrow account or to handle this on their own. With an escrow account, the money that is required for real estate taxes and homeowners’ insurance is broken up into 12 months. That way, homeowners can pay a little bit every month instead of paying it all at once, when the money might get tight. When should homeowners use an escrow account?

Savings Habits And Risks

First, some homeowners would rather handle real estate taxes and home insurance on their own because they want to be in control of their finances. While this is fine, some lenders might see this as an increased risk. If they view that homeowner as a risk, then they could use this as an excuse to raise the rate on the loan. Homeowners need to make sure they do not have to pay more for the loan simply because they are not using an escrow account.

Next, homeowners also need to think about their individual saving habits. Because home insurance and real estate taxes are often paid as one lump sum, this could be a lot of money leaving the account at once. If homeowners do not have appropriate saving habits, they might not set this money aside when the payment is due. If they fall behind on their real estate taxes, they could place themselves at risk of losing the home.

Mortgage Tagged: Escrow, Mortgage, Savings

RPM Mortgage
Kathryn Jean Keller

Contact Kathryn Jean Keller


Office: 206-957-9490
Mobile: 206-999-4584
kkeller@rpm-mtg.com

MLO #57801
  APPLY WITH KATHRYN

Connect with Me!

Get A Free Rate Quote!

  • This field is for validation purposes and should be left unchanged.

Recent Posts

  • What’s Ahead For Mortgage Rates This Week – August 8, 2022
  • How To Avoid Delays When Remodeling
  • The Best Ways To Get To Know Your Neighbors
  • Save Money On DIY Projects Around The House
LendUS, LLC - NMLS #1938 l WA #CL-1938 l Equal Housing Opportunity

nmlsconsumeraccess.org
State Licensing — Click Here

Equal Housing

Our Location


1700 Westlake Ave N, Suite 300
Seattle, WA 98109
Business: 206-957-9490

Copyright © 2022 Kathryn Jean Keller   ·  All rights reserved   ·   Log In