Comments on: The Top 10 Reasons You Should Never Escrow Your Property Taxes And Home Owners Insurance With Your Mortgage

By: Brad G

Brad G — Fri, 22 Jul 2011 17:17:29 +0000

Not sure as I don’t work in the mortgage industry anymore. Sounds right if you are going through FHA.

By: lina

lina — Tue, 19 Jul 2011 19:15:59 +0000

I have a 30 year FHA mortgage with 6.5% interest. The mortgage company told me that if you have a FHA loan you must have an escrow account. Is that true? So there is no way to pay taxes and insurance on my own?
Thank you.

By: Brad G

Brad G — Wed, 02 Mar 2011 03:13:44 +0000

@ John

You have to contact your lender.

By: John Rowe

John Rowe — Wed, 26 Jan 2011 20:41:14 +0000

I have this now.How do we get out of sending them the tax and ins money?

By: Bill

Bill — Sun, 14 Nov 2010 06:43:41 +0000

country is a sinking ship. they are taxing and feeing everything to pay for illegals, massive benies and OT for unionites, and pensioners retiring at 50-55 and collecting 6 figs till death. confuscatory taxes and feeing has imprisoned many in the states. as inflation and taxes eat up at least 40-60% of income. for what really?

bad schools, roads in disrepair, health care for illegals and freeloaders, subsidies to countries that dislike us, social workers to the world. etc… trying to save 0.01% on property tax is a futile attempt to urinate in ocean of america.

By: Jessica

Jessica — Sat, 30 Oct 2010 02:56:29 +0000

Hello Brad,
I has a quick question. My husband and I recently decided to buy a nice piece of land from a good friend. We agreed to pay 80,000 for it- and paid 12,000 as a down payment with 3% interest.
Do we need an escrow? Do we need a collection company? Are they the same?
I have been planning on buying another piece of land from another person that would agree to carry a 1st or a second if the 1st was small (which it is) What would you recommend in general… and what should we watch out for?

By: Anon

Anon — Wed, 15 Sep 2010 19:44:37 +0000

Anytime anybody tells you something is the “law,” make them prove it! That was a dirty trick to wait until the last minute and say you couldn’t escrow. If it were me, I would’ve delayed closing until I looked up this supposed “law.” Organizations thrive on our ignorance!!!

By: Brad G

Brad G — Tue, 31 Aug 2010 20:37:12 +0000

@ Lynn

I see 10 reasons. Never claimed to be a great writer so I’m sorry if they’re not clear. There is only 1 good reason to escrow your taxes and insurance and that is convenience. That is why its there. You giving the mortgage company the interest you would have earned saving it on your own. That is the trade off.

Maybe telling people to “grow up” was a bit harsh and I apologize. Yes, I did figure it out the hard way. I worked almost 70 hours a week for 2 years talking to at least 10 people a day who did not know anything about finances. I would say around 80% were one paycheck away from financial disaster and all of the foreclosures going on around the country proves that.

I grew a couple grey hairs at the job but I learned so much from being in that environment. I would learn more about a persons finances in 10 minutes then any of their family members might ever know about them. Kinda scary huh? I learned my lesson through other people’s mistakes.

By: Lynn

Lynn — Tue, 31 Aug 2010 19:19:53 +0000

So you write an article in ten paragraphs giving one reason and claim it’s ten reasons? Wonderful! Do I trust someone who can’t count to 10 for reasons to give me financial advice? Hardly.

Do I believe you on what the mortgage companies are doing with my money? Sure, however, you, oh cocky one, who thinks telling me to “grow up” proves your maturity, there are legitimate reasons to escrow even knowing all this.

What are they? I’ll tell you when you grow up. Then again, based on your attitude, I’m sure you’ll figure it out the hard way eventually.

By: Brad G

Brad G — Mon, 30 Aug 2010 16:33:30 +0000

@ Gina

Not sure. Things have changed a lot since I was in the mortgage industry. Sounds like a lie though.