Most home loan lenders require a client to pay a portion of their property taxes, and insurance(s) each month as part of their house payment. This portion collected by the lender each month goes into an account called an escrow account that is used to pay the property tax bill and insurance policies. This is a great way for homeowners to pay a little over time vs. getting a huge bill once or twice a year that may strain their budget.
Related Article Title: Will Fannie or Freddie allow an escrow waiver for flood insurance? Question: Do either Fannie Mae or Freddie Mac allow escrow waivers when a property is in a flood zone, or is it mandatory to escrow? Flood Insurance Requirements – All Agency Chart Answer: Escrow waiver policies for Fannie Mae and Freddie […]