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Debt Consolidation USA Talks About Escrow Account in a Mortgage Loan
  • USA - English


News provided by

Debt Consolidation USA

Sep 14, 2015, 12:00 ET

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DebtConsolidationUSA.com
DebtConsolidationUSA.com

Phoenix, AZ (PRWEB) September 15, 2015 -- Debt Consolidation USA recently published an article that aims to help consumers understand how the escrow payments in their mortgage loan payments work. The article, titled “3 Thing You Need To Know About Your Escrow Account,” looks at some of the most common questions and issues homeowners have with their escrow payment.

The escrow amount is meant to cover payments for taxes and insurance on the house.

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The article start off by pointing out how a mortgage loan is one of the traditional ways for Americans to realize one of their dreams. Homes are understandably expensive and not everyone is able to earn enough to buy a house with cash. The normal and society-accepted route is to get a mortgage loan and just pay a monthly amount to banks.

But there are a lot of consumers who are unable to understand how the escrow payment in their mortgage loan works and gets confused with how they are being computed. The article aims to educate consumers about it, starting with what the escrow payment is made of. This is not to be confused with preliminary and closing costs, but this escrow payment is the one that goes together with the monthly payment.

Consumers need to understand that they are paying for the principal which is the amount they borrowed and interest every month. If the loan is a fixed-rate loan, that amount will not change regardless how the market behaves until the end of their loan period. The escrow amount is meant to cover payments for taxes and insurance on the house.

The article explains that the amounts change because the country can reassess and change the property tax as well as insurance companies can change the premium on the house at certain points in time. These changes are then reflected on the amount of money being paid out by the consumer every month.

To read the full article, click this link: https://www.debtconsolidationusa.com/personal-finance/3-thing-you-need-to-know-about-your-escrow-account.html

Adam Tijerina, Debt Consolidation USA, http://www.debtconsolidationusa.com, +1 1-877-610-6990, [email protected]

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