Hey guys, I'm here to answer the question “What exactly is an escrow account?” An escrow account is something that is usually set up by your lender and part of your mortgage payment. It is intended to cover your annual property taxes and insurance payments. That way you don't have to worry about accounting for those payments on your own. When those bills come due, the lender will pay them on your behalf out of that escrow account.
I highly recommend setting up these accounts, because for some it's really difficult to set aside that money throughout the year without spending it. This way you don't have to worry when those payments come due at the end of the year. The money is already there! So if you guys have any other questions, please let me know. Hope that helps out!
You can email me at Kimberly.Moon@eXpRealty.com, text me/call me at 214.783.4292 or visit me at www.kimberlymoon.com. I look forward to hearing from you!