Do I really have to pay escrow?
Paying this year doesn't guarantee you will pay next year and the year after. They collect money in advance as a safety for them. Generally, that includes money for insurance as well as taxes.
It makes sense that a lender would need a guarantee that the taxes and insurance are paid. If the place was "taken" for back taxes, or if it burned down, how would the lender ever get you to continue to pay the mortgage for the next 30 years?
Of course, there are lenders out there who might allow for the buyer to pay his/her own taxes, but usually that is based upon due diligence findings that the buyer has good credit and no history of financial failure.
- 15 Old House Features We Shouldn't Abandon
- 17 Tiny Bathrooms We Love
- Make Your Bed: 9 DIY Headboards
- Insanely Easy 60-Minute Home Improvements
- Space-Saving Solutions for Tiny Bedrooms
- 9 Perfect Color Combos for Your Home
- 22 Tiny Houses We Love
- See the Most Highly Anticipated Colors for 2015
- What's the Best Color for Living Rooms?
- Favorite Space-Saving Double-Duty Furniture
- 10 Low-Cost DIY Home Security Solutions
- Redecorate Without Spending a Dime: 10 Ideas
- 10 Houseplants You Can Grow Anywhere
- 9 Amazing Mobile Home Makeovers
- 10 Doable Designs for a DIY Rug
- 9 Alternative Uses for Toothpaste
- Live Large in a (Very) Small Space
- 8 Cheap and Unique DIY Nightstands
- 15 Eye-Catching Options for Your Front Door
- Supersize Your Small Bath with 8 Pro Tips
- Don't Try This at Home: 7 Dangerous DIYs
- 10 Simple Woodworking Projects
- Is There Anything Vinegar Can't Do?
- 7 Incredible Uses for Salvaged Lumber
- 12 Tiny Gardens You Can Grow on a Tabletop
- 16 Sneaky Storage Ideas
- 10 Surprisingly Smart Solutions for Junk Drawers
- Bright & Bold Colors for Your Front Door
- DIY Bookcases: 16 Easy Project Ideas
- Don't Make These 7 Fireplace Mistakes