homeowners...i got a question for you

first let me say that ive been explained a few times now what an escrow account is (the one held by the bank not the attorney)

i kinda understand parts of it but i have a few questions


if they are taking atleast 3 or 4 months upfront, at could be max of a full year of taxes depending on when you close (which is another thing i dont get but that's besides the point)....why would i be paying monthly taxes for the first year or for whatever amount of months they take for the escrow account?? i just dont understand.

second question is, if you apply and get a star exemption which could amount to a decent amount each month and sometimes over $100 bucks, how does this get applied since you have already put money into an escrow account equaling the taxes before the star.

tia!

Re: homeowners...i got a question for you

I don't think anything went into ours up front. It's added to your monthly payment.

In fact our mortgage company was under charging us, and there was a shortage in the account which we had to make up this year (paymnent went up monthly by $169)

We applied for star, but it won't be applied until Dec 2011 Tax bill. The mortgage compay would probably pay you back the difference.

Escrow accounts seem very annoying and confusing to me.

Re: homeowners...i got a question for you

thanks, ugh, yes they are annoying and confusing. i understand i guess collecting a full year of the ho insurance to protect was is technically theres butr ugh the taxes...thats a LOT of money