Escrow Question

What was in the escrow account when you signed your contract??

I am so confused about escrow...Can someone explain to me what it is there for??

Our mortgage stipulated that we put money into escrow each month. When our tax bills come due, our mortgage co. will pay the taxes with the money we put in escrow. We will not have to write checks ourselves for the taxes.

We also had to put money in for our homeowners ins. even though we paid for our first year in advance. When we make our first payment next month, we will be paying towards a policy that won't need to be paid for until next May.

The money we put down at contract also went into escrow but I would guess that was a separate account since that money went to the sellers.

Hope this helps.

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Posted by TracyInQueens

Our mortgage stipulated that we put money into escrow each month. When our tax bills come due, our mortgage co. will pay the taxes with the money we put in escrow. We will not have to write checks ourselves for the taxes.

We also had to put money in for our homeowners ins. even though we paid for our first year in advance. When we make our first payment next month, we will be paying towards a policy that won't need to be paid for until next May.

The money we put down at contract also went into escrow but I would guess that was a separate account since that money went to the sellers.

Hope this helps.

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That sure does help! I was just so confused...We received our contract over the weekend & it stated that there was $500 in there now & our deposit was going to be put in there...My FFIL was under the impression that escrow was to cover anything that went wrong in the house up to 90 days after the closing