by 
Anonymous
ANSWERS: 2
-
If you can, it would be a poor way to save money, and a hassle. Why not put this extra money in your own savings account, CD, or Money Market? That way, you'll earn a little interest, maybe at least keep up with inflation, and have easier access to it.
-
The lender controls the escrow account and the federal laws that regulate that control are pretty strict. You will be required to pay a monthly amount that is actually determined by a Federally determined formula. Of course, the tax and insurance amounts plugged in by the lender have to be correct for the formula to work! At least once a year the account must be analyzed by the lender and any extra in the account must be dealt with. You might receive a letter that says you can get a check or apply the amount to principal. Because taxes and insurance generally go up rather than down, you won't have a surplus in the account very often. If you want to save a little extra for a rainy day, put the money in an ordinary savings account. At least then you will earn interest. Any money that you send to the lender will risk being misapplied and no one in the customer service department will have a clue how to answer you if you say you want to borrow some of it back. The Underwriter 2rHouse.org
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC