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Would you be better off earning interest than letting the bank hold your money?
You may not have ever known you had a choice of escrowing your own taxes and insurance but in most cases you could.
It’s not a conspiracy – although it may be a method to have the bank earn interest on the money they hold for you – but it certainly is a nice convenience.
Having an escrow account for your mortgage doesn’t really cost you anything. Actually, it saves you the headache of having to remember to send the check once a year (or twice if you are in Minnesota).
As Coach Bill says in today’s episode, there really isn’t much of an advantage to escrow your taxes and insurance yourself in this low interest rate environment.
Then again, if interest rates on savings accounts were at 4% instead of .5% as they are today, would I be willing to lose out on $90 of interest?
Here are the questions Coach Bill answers:
- What is Escrow?
- Are escrow accounts mandatory?
- What are the advantages of having an escrow account through your mortgage lender?
- Is it more financially efficient to escrow my taxes and insurance than to not?
- Can I create an escrow account with someone other than my lender?
- What are the disadvantages or things we need to be aware of if we don’t hold escrow through our mortgage lender?
- What happens after I pay off my house? Do I still send my bank escrow money?
We may talk about topics you are already familiar with – but we challenge the way you think about money and allow you to internalize the problem to come out more educated and certain of the decisions you will need to make.
To work one-on-one with Coach Bill, myself, or any one of our skillfully trained Financial Wellness Coaches, visit http://FinancialWellnessShow.com/coaches.
We have a free consultation to make sure one of our coaches will be the right fit for you and your family’s financial situation.
