Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Justin Froiland from Fairway Mortgage. This morning we talked about "Escrow" and why do you need it, OR do you need it. You can reach Justin at 605.695.1429 or justin.froiland@fairwaymc.com. His office is located at 412 5th St., Brookings SD 57006 or on the web at www.BrookingsMortgage.com
ESCROW ACCOUNT-WHAT IS IT?
- Alright, here we are, everybody. Good mornin', it's Monday morning, almost, or a little bit after 8:15. Shane Andersen, here, with Brookings Home Team, powered by Century 21. Got Justin Froiland, here, with Fairway Mortgage, and with it being 8:15, that means it's our Monday Morning Mortgage Tip. I don't even know what number this is, number 35, 36, somewhere in there, so,
- Something like that.
- So, what do you have for us, this morning, Justin?
- Yeah, Shane, well, thanks for havin' me. This morning, I wanted to spend a little bit of time talking about the escrow account. Last week, I had a couple different situations come up, where the people I was working with were not familiar with that terminology, so I just wanted to go over what that escrow account is. So, basically, what the escrow account is, it's, essentially, a savings account that's attached to your loan. And, every month, when you make your monthly mortgage payment, you've got the principal and interest portion of it that go to repaying back your mortgage, and then the rest of the amount of your mortgage payment goes into, it's in an escrow account. That can be anything from your property taxes to your homeowner's insurance, maybe PMI, if you have that on the loan, or if you're livin' in a homeowner's association, there could be some HOA fees, or in a flood zone, there could be some flood insurance fees. So, there's a number of different things that could go into that escrow account. But, basically, what is does, is it's a savings account attached to the loan, and then, twice a year, when property taxes are due, and once a year, when homeowner's insurance due, and so on and so forth, those are paid out to those providers, so it's not something that you, as the borrower, has to worry about. And, you do have the option, if you have 20% to put down on your loan, you do have the option to escrow or not. You can choose not to escrow if you do have 20% to put down, and go about it that way. And then, it would be your responsibility to make sure that those payments are made. And so, I just wanted to spend a little bit of time talking about that. It's a big aspect of that mortgage payment, and I think it's important to understand what all goes into that monthly mortgage payment.
- Yeah.
- And, so that's what I wanted to go over, today, Shane. So, that's all I had for you.
- OK. Yeah, so, like you said, it's kind of like a savings account
- Yeah.
- for a homeowner, takes care of everything for them, so.
- Correct.
- If you can put 20% down, then you can choose not to have that escrow. Me, myself, I just as soon keep the escrow and let people take care of it for me, so.
- Out of sight, out of mind.
- Exactly, you bet, so. You got any more questions, or any concerns, or anything, for Justin, please reach out to him, here. As usual, I have all of his information on the top, on the bottom, on the sides, wherever your device will allow you to see that. And, if you do have a question for myself or Justin on our next episode, please reach out. Message us, give us a call, we'd be happy to answer that question on our next episode, so. There you have it for our snowy Monday Morning Mortgage Tip. So, thanks for watching, guys. Until next week, we'll see you guys, later.
- [Both] Thank you.
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