You may have heard the word "escrow" thrown around, but what does it actually mean?
Think of it like a budgeting tool built right into your mortgage payment. Like any loan, you'll see part of your monthly payment go to the principal and interest, but owning a home means that you need to plan for your taxes and insurance, too.
Having an escrow account in place averages those annual costs and factors them into your monthly payment – no extra budgeting or savings to worry about on your end.
With each mortgage payment, money is deposited into an interest-bearing escrow account for taxes, homeowner insurance, and mortgage insurance. When taxes and insurance are due, the mortgage department draws from the account for payment to the tax agency and insurance companies.
Visions understands that situations change, which is why we complete an escrow analysis on each Visions mortgage every March. Escrow is changed based on current tax payments and then your mortgage payments are adjusted accordingly.
Analysis documentation is mailed prior to the payment change explaining any updates, which will be reflected in your May statement.
This keeps you informed of any adjustments or increases and reassures you that your mortgage escrow has been reviewed. After all, the best part of any escrow is the peace of mind that comes with knowing your taxes and insurance have been paid.