This is a common question we get asked, particularly by first-time home buyers. An escrow account is a fund established for the collection and payment of property taxes, hazard insurance, and mortgage insurance premiums. This is important, because it puts these funds aside to make sure the money is there for these items, preventing any unexpected expenses. Escrow payments are collected as a part of your monthly mortgage payment and the balance builds over time. If there is an excess in your escrow account after these expenses are paid for the year, you will receive a refund check.
For more information about escrow accounts or other home loan questions, please contact your nearest Arvest Mortgage Lender.