Dear Peter:
Your professionalism and knowledge of the industry surpassed all of my expectations. It is clear that you truly care about your clients, and make certain that all of their needs are met in a timely, efficient manner. I will highly recommend your services to anyone seeking assistance in the home buying process.
Mya Newman
Tuesday, March 28, 2006
Tuesday, March 21, 2006
What is an Escrow Account?
I recently met with one of my clients who is a first time home buyer. She has an accepted offer on a very nice house, and is excited to be moving in to a house she can call a home. We reviewed the Good Faith Estimate for her mortgage and had a lengthy discussion about what escrow is and why she would have an escrow account, so I thought it would be a useful post for this blog!
So what is it? An escrow account is a savings account for real estate taxes and homeowners insurance. Borrowers who have an escrow account associated with their mortgage pay a set amount each month in addition to the principle and interest on their mortgage, and this money is put into a savings—or escrow—account. The amount put into escrow each month is about 1/12 of the anticipated annual real estate taxes and homeowners insurance premium. For example, if a homeowner must pay $1200 in annual real estate taxes and $120 for homeowners insurance each year, the monthly escrow payment would be $130, or $120 towards taxes and $10 towards insurance. In December of each year, a check is mailed either to the borrower or directly to the municipality, and the real estate taxes are paid. On each anniversary of the purchase of the home, the lender will send a check to the insurance company, and insurance will be paid in full for the next twelve months. By having an escrow account, both the borrower and the lender know that the taxes and insurance will be paid, in full and on time!
Is escrow required? Sort of. Most lenders require escrow, though if you would rather save your own taxes, escrow can be waived for a fee, typically ¼% of the loan amount.
For more information on escrow or other mortgage questions, feel free to call or e-mail me at 414.807.7277 or pkazaks@hotmail.com
So what is it? An escrow account is a savings account for real estate taxes and homeowners insurance. Borrowers who have an escrow account associated with their mortgage pay a set amount each month in addition to the principle and interest on their mortgage, and this money is put into a savings—or escrow—account. The amount put into escrow each month is about 1/12 of the anticipated annual real estate taxes and homeowners insurance premium. For example, if a homeowner must pay $1200 in annual real estate taxes and $120 for homeowners insurance each year, the monthly escrow payment would be $130, or $120 towards taxes and $10 towards insurance. In December of each year, a check is mailed either to the borrower or directly to the municipality, and the real estate taxes are paid. On each anniversary of the purchase of the home, the lender will send a check to the insurance company, and insurance will be paid in full for the next twelve months. By having an escrow account, both the borrower and the lender know that the taxes and insurance will be paid, in full and on time!
Is escrow required? Sort of. Most lenders require escrow, though if you would rather save your own taxes, escrow can be waived for a fee, typically ¼% of the loan amount.
For more information on escrow or other mortgage questions, feel free to call or e-mail me at 414.807.7277 or pkazaks@hotmail.com
New Responsibilities
As of yesterday, I am now a member of the board of the Apartment Association of Southeastern Wisconsin. I look forward to contributing to this great organization, which helps our area's landlords provide quality housing at reasonable prices.
If you are a landlord or are considering investing in residential real estate, I suggest you check out this organization. I have been a member for a year and a half, and have learned a great deal from the speakers at our monthly meetings, and from the connections I have make through the organization.
Check out the website here.
If you are a landlord or are considering investing in residential real estate, I suggest you check out this organization. I have been a member for a year and a half, and have learned a great deal from the speakers at our monthly meetings, and from the connections I have make through the organization.
Check out the website here.
Monday, March 13, 2006
Funny
There is no doubt that the various parties I interact with in the course of a purchase transaction each have a different view the house being bought/sold/appraised/mortgaged. Find an illustrated guide here.
(tongue planted firmly in cheek...)
(tongue planted firmly in cheek...)
Sunday, March 12, 2006
Spruce Up Your Home for Under $25!
With spring on the way, I spent part of the weekend doing some "spring cleaning." Feels good to have a fresh house as we look forward to enjoying warmer weather. Many homeowners would like to spruce up their home this time of year. Need some ideas to do so without breaking the bank? Check out this article!
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