For residents of Port Jervis, NY, looking to buy or sell a home, there’s only one real estate broker to call on: ERA Meloi Realty. Their real estate agents take special care to make sure the entire real estate transaction goes smoothly, while also ensuring their clients understand everything clearly. That includes explaining what certain real estate terms, like escrow account, mean.
Here, these real estate agents will explain what an escrow account is, as this term is commonly found in property transactions.
What Is An Escrow Account?
An escrow account is a separate bank account that is opened when you buy a home using a loan or mortgage lender. Its sole purpose is to act as a holding account for money that is needed to pay property taxes and insurance on your home.
How Does An Escrow Account Work?
Generally, at the same time you make your mortgage payment, you are also paying into an escrow account. Your mortgage lender manages your escrow account, paying your property taxes and insurance premiums whenever they are due. Some lenders require you to have an escrow account as a means of protecting their loan investment.
While it’s not a guarantee you’ll be required to have an escrow account, there are a lot of benefits to opening one if you have a mortgage. ERA Meloi Realty can answer any questions you have about escrow accounts or other real estate terminology and transactions. You can speak to a real estate agent at any time to ask questions or set up an appointment to view a current listing. Just call (845) 856-4492. You can also visit them online to see their current property listings.