When you mortgage your home, you’ll likely have escrow payments added on to the bill each month.
This money sits in an account to pay the taxes and insurance.
You don’t get to say how much goes in each month.
If you’ve got an established history with the bank, you could save by paying these expenses yourself.
For our house, we cut insurance costs substantially last year by switching companies.
Our property taxes also went down by just a bit.
Our escrow payment, however, went up.
I let Well Fargo keep my money for almost a year!
I thought it would be harder actually, but all it took was a phone call.
It was so easy that I cancelled our home escrow account as well.
Now, we can keep our own money and pay taxes and insurance ourselves.
The bank sets up the escrow to protect their investment in the house.
You just won’t overpay and then getting a refund at the end of the year.
