Closing escrow can be a confusing process, unless you have previously familiarized yourself with the industry! If you are a first-time homebuyer, you may not completely understand what a mortgage escrow account entails. Here are a few bits of basic information that you may find useful if you are in the market for a new home:
- The term “escrow” refers to a legal agreement with a third party who has no personal interest in the legal matter, where funds are deposited until a binding, legal agreement has been fulfilled.
- Mortgage escrow services somewhat mimic a savings account. When a homeowner makes a payment on their mortgage, the money will go straight to the escrow service. The escrow service then saves a portion of the money to cover various property taxes.
- Mortgage escrow accounts have become increasingly popular due to their ability to prevent potential foreclosures due to missed property tax payments!
- Mortgage escrow accounts prevent you from having to pay a large sum once a year! They act as a sort of free budgeting service. You simply pay a bit extra in order to experience the relief of not needing to manage your annual tax payments!
- Most mortgages will require you to open a mortgage escrow account.
If you would like more information regarding mortgage escrow accounts, and how one could benefit you, please contact the escrow experts at Brighton Escrow, located in Hermosa Beach. We are one of the top full-service independent escrow companies in Southern California that is both bonded and licensed. With almost 50 years of experience, we can assist you in more ways than you can imagine! Our escrow professionals are highly qualified, and will not stop working until you are completely satisfied with their service. Let us assist you with escrow, and give us a call, today!