FLIP’N Video Training is a SUCCESS
Jeremy Mullens
If you missed this training, but would like information that was covered, please contact America’s One Title at 616.365.4100 for an appointment!
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- Scott Diaz & Lisa Vanderloo
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- Jeremy Mullens
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- Higher Ground Helicopter Arial Camera
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- Jeremy M., Steve Volkers & Jason R. Johnson
Escrow Payment
Have you ever studied your house payment? Does it ever seem like a math problem that simply doesn’t add up? Here is a little lesson to explain those unexplained variables.
Your mortgage payment can allocate payment to several areas. Of course your payment’s primary function is to pay the principal and interest on your mortgage. However, there are some other portions of the payment allocated to your escrow account .
An Escrow Account is a separate “savings” account set up for you by the lender. Make no mistake, though, it does not earn interest. The sole purpose of this account is to have money from the total payment set aside for when it comes time to pay your property taxes, private mortgage insurance and homeowner’s insurance. It has no other purpose or function. So if you want a vacation and have no money, sorry you cannot tap that account. This way the lender can ensure that you have the money to pay the taxes and the insurance when they come due, plus it is worry free for you.
So take a look at that next monthly statement. There is a spot to tell you how the mortgage company is managing your escrow account.
What does title mean?
If there is one word that is used most often in our business, it might be “title.” We’d like to get back to the basics and explain just what title means.
Title insurance is an indemnity policy that protects you (via the owner’s policy) and/or your mortgage lender ( via the lender’s policy) against problems relating to the property’s title prior to the date of the policy. It is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters. It will defend the insured against a valid claim attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. Typically in Michigan, on sale transactions, the owner’s policy’s is paid by the seller of the property and the lender’s policy is paid by the purchaser/borrower. On refinances, the owner/borrower usually pays. An owners policy will last as long as the owner (or heirs) remain in title. A loan policy only lasts as long as the mortgage it is insuring. That is why a new loan policy is required each time a borrower refinances.
What Does Escrow Mean Anyway?
“Escrow” is a commonly used term around our business. We realize it may not be common knowledge so we wanted to provide a definition of the term.
Escrow is a word that has several meanings. Escrow can describe the process of closing a loan or a specific sale transaction involving sellers, buyers, and lenders. A process or set of tasks that are on “hold” or not completed in some way can also be described by the term Escrow. Escrow also refers to a type of account in which a third-party holds funds on behalf of or for the benefit of others. It is also used broadly as a name of a department in a title company…AND is used in the name a of job title such as, Escrow Officer.
We hope this has helped to es-grow your real estate vocabulary…and YES, pun intended!
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What is “FSBO?”
“FSBO” is an acronym for “For Sale By Owner”
Deciding to sell your home on your own is an important decision and the process can be time consuming. We believe it to be in the best interest of the homeowner to interview and select a trained Real Estate Professional who can provide expertise and assistance in listing and selling real estate. However, many people are successful at selling their home on their own. Either way, we want to assist you as much as we can in the process and become your title company of choice. Please feel free to contact our office at 616-365-4100 during business hours 9am-6pm EST. We would enjoy the opportunity to answer any questions you may have.
