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Updated almost 12 years ago on . Most recent reply

Matt M.'s profile image
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Matt M.
  • from Orchard Park, New York
  • Member since Nov 8, 2012
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Matt M.'s profile image
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Matt M.
  • from Orchard Park, New York
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Matt M.
  • Orchard Park, NY
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What is escrow?

Matt M.
  • Orchard Park, NY
Posted

I know this is probably a terribly stupid question, but I was not pleased when I saw that escrow on a $96.5k loan was nearly the principle; like $3xx and change! Thats crazy!
So what exactly is escrow, and why do I have to pay it?

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Steve Babiak
  • Real Estate Investor
  • from Audubon, Pennsylvania
  • Member since Apr 13, 2009
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Steve Babiak
  • Real Estate Investor
  • from Audubon, Pennsylvania
  • Member since Apr 13, 2009
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied

Find a house with lower taxes, or change your insurance to a higher deductible, and you can reduce that escrow. How big it is is a function of the house you've chosen, not the bank.

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