Should You Escrow Taxes and Insurance 

Escrowing mortgage property taxes, insurance, or both can have its benefits and drawbacks. Here are the top reasons why you should or should not escrow property taxes and insurance.

Benefits to Escrowing

• Escrowing provides convenience since you do not have to pay your taxes, mortgage, and insurance separately
• You can get the lowest interest rate or lowest fees since most lenders will often charge money to waive escrows
• You do not have to worry about paying taxes and insurance in a lump sum when they become due

Drawbacks to Escrowing

• Closing costs will be higher since the lender collects tax and insurance reserves at closing
• The money put in escrow during the year could be invested to make a return on your money
• While taxes and insurance are paid by the lender when they are due, you are not in control of the payments

If you have other mortgage escrow questions or just need help on your home purchase, refinance, or home equity loan, contact a BeatMyBroker.com loan professional today.