Why You Should NEVER Use a Mortgage Escrow Account
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Published 2023-04-01
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We'll delve deep into the world of mortgage escrow accounts, exploring how they work and what it means for your monthly payments. Whether you're a first-time homeowner or a seasoned property investor, understanding the ins and outs of mortgage escrow is essential for managing your finances effectively.
Key topics covered in this video include:
Mortgage escrow account explained: What is it and how does it work?
The benefits of having a mortgage escrow account
The downsides of mortgage escrow and how they might impact you
My personal experience with mortgage escrow and why I decided to opt-out
Step-by-step guide on how to get out of mortgage escrow for a stress-free financial future
Don't miss this opportunity to become an expert on mortgage escrow accounts. Hit the "subscribe" button and give this video a thumbs up if you found it helpful. Feel free to share your thoughts, questions, or experiences in the comment section below. Let's start a conversation and help each other navigate the complexities of mortgage escrow!
#MortgageEscrow #MortgageEscrowAccount #MortgageEscrowAccountExplained
Chapters of today's video on Mortgage Escrow Explained:
00:00 Introduction
01:03 Escrow Shortage Story
02:06 Escrow Account Explained - Pros
02:44 Escrow Account Explained - Cons
04:30 How to Get out of Mortgage Escrow
Bob recounts a shocking incident that happened about a decade ago, when his mortgage company sent him a notice, out of the blue, demanding an extra $300 per month due to a miscalculation of property tax. This unexpected increase in monthly payments led him on a journey to explore how mortgage escrow works and why he believes it's more beneficial to bypass it.
The video does not only focus on the cons of escrowing but also presents some pros. For instance, Bob explains how escrowing can help new homeowners, especially those new to budgeting. With escrow, property taxes and insurance are mixed into the mortgage payment, eliminating the worry of making separate payments.
However, the bulk of the video dives into the drawbacks of an escrow account, based on Bob's personal experience and financial expertise. He passionately discusses his stance against escrowing, emphasizing that it deprives homeowners of the ability to control their own money. By opting out of escrow and managing your own savings for property tax and insurance, you may potentially earn some interest on your money, and avoid unpleasant surprises from miscalculations.
Bob also shares his insights on how eschewing escrow helps simplify mortgage calculations, making it easier to plan and track mortgage payoff progress. This advice is particularly helpful for homeowners on a path to pay off their mortgage early, as Bob himself aims to pay off a 30-year mortgage in only five years.
Whether you're a new homeowner or have been making mortgage payments for years, this video is a must-watch. Learn from Bob's personal experiences, and equip yourself with the knowledge to make informed decisions about your mortgage escrow. It's all about taking control of your finances and becoming the master of your own life. Don't forget to subscribe to Bob's channel for more valuable insights on mastering your mortgage and financial journey.
If you found today's video of Mortgage Escrow explained helpful, be sure to LIKE, SHARE, and Subscribe!
*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be avai
All Comments (21)
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I just got hit with an escrow shortage of 6k!! And my mortgage payment went from 1200 to 2100!?!? My head is hurting right now! 😮💨
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Just closed my escrow account. Every year I’m supposedly short. This year my mortgage went up $180 a month due to a supposed shortage. I can manage my money better than they can.
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I have an FHA loan just bought my home in July 2023 they won't let me remove my escrow account just yet. I just got hit with a shortage of 5K, increasing my payment by $746! Hate it.. Have no other choice than to find a side hustle and try to pay off my home asap.
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Thank you…this is great information 🙌🏽
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Do you hate your Mortgage Escrow account?
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Thank you so much for this crucial life advice, Bob! 👍
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it does make sense, thanks.
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In New york escrow accounts pay 2% interest minimum still probably better to keep cash in something like spaxx or high yield savings right now though
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Can you please do a video on the top 10 fintech companies that will be the technology backbone behind the new banking systems that will soon be put in place.
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I'm here because my Escrow went from $700 to $1500
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Estimated Taxes are done on a quarterly schedule so if you own property, the tax bill received shouldn’t be that huge in terms of Escrow. Which could be the reason for many average taxpayers looking into refinancing have chosen not to escrow based on a poor understanding of the banking system in general.
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Hey Bob, how do you go about getting rid of escrow without refinancing?
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How do you know how much to save for property taxes if it changes each year?
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Love the video bro, looks a bit more personal away from the studio👍
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So glad my home is paid off. That stuff happened to me all the time 🤦🏼♀️
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So beginning June my escrow went up $325 more a mo. Makes sense
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The city accidentally removed all of my disabled veteran exemptions for the last like three years. My payment went from 1085 up to 1900. I had to refill out paperwork back last year and they just fixed it. I just got a check today for $9,645.34. I have been comfortably making the payments. Should I give them this check to make my payments go back down or should I just keep it?
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The convenience of Escrow Account is not good enough for all the headache they cause to you. They increase charge and fee any time.
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I DO LIKE THE EASE OF USE THAT IT PROVIDES, BUT I DO BELIEVE IF THE ACCOUNT IS OVER FUNDED OVER $500 THEY PAY YOU BACK THAT AMOUNT WITHIN 90 DAYS. THAT BEING SAID THEM RAISING THE RATE FOR THE TAX CAN BE A BUMMER BUT AS LONG AS YOU'VE BUDGETED FOR THE INCREASE WHICH IS SOMETHING I JUST HAVE STARTED TO DO IT DOESN'T HIT AS HARD.
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Should we pull out money from the stock market with the news the Saudis want to ditch the U.S dollar?
