Escrows – Pay With Mort­gage or Use To Save Interest?

Why do a lot of lenders not give mort­gages unless you pay them escrows with the monthly pay­ment?  They will not even give you an option. Because they make good use of your money while it is wait­ing for tax time.

There are some lenders how­ever who will give you an option, and if they do, you would be wise to say ‘no thank you to pay­ing escrows, I’ll pay my own taxes’, and here is why.

#1 – Taxes are due twice a year, so if you are pay­ing the bank/lender a por­tion every month, what are they doing with that money? Of course they are invest­ing it and earn­ing them­selves some nice inter­est. They are most likely lend­ing it to some­one else. Maybe you are the some­one else?

#2 – Let us look at how that escrow pay­ment money could be work­ing for you instead of work­ing for the lender. Read the rest of this entry »

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