Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Mortgage
Profile Image

Question By
chrave

0 Contributions
0 People Helped
Escrow Account.
Every year, my mortgage company sends me an increase in my escrow payment; therefore increasing my monthly mortgage payment. Is there any way that I can avoid paying into my escrow? I have my mortgage account in excellent standing from the past 10 years.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1884 Contributions
3675 People Helped

Realize that what your escrow is paying

You do understand what your escrow account pays for, Right?

Most escrow accounts cover the mortgage, Taxes and insurance. So even if your mortgage payment is a Fixed payment, Every year your taxes and insurance are re-accessed. Meaning that those dollar amounts are changing.  

Now if you want to stop paying into the escrow, you can start paying the taxes and insurance seperately. Contact your mortgage company about it. You will be responsible for the lump sum payments due each year in your tax bill and for your insurance payment.  You will probably want to open a savings account where you can put away a little each month so you have the money when the tax bill and insurance come due.  But wait, don't they call that an escrow account?  

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.