For homebuyers1 min read
What an escrow account does
Why your property taxes and insurance are often bundled into your mortgage payment, and why that payment can change over time.
One payment, several bills
Most mortgage payments cover more than principal and interest. Your lender collects a portion of your property taxes and homeowners insurance each month, holds it in an escrow account, and pays those bills for you when they come due. It spreads two big annual costs across the year.
Why the payment can change
Your principal and interest stay fixed on a fixed-rate loan, but taxes and insurance don't. When they rise or fall, your lender runs an annual escrow analysis and adjusts the escrow portion of your payment to match. That's the usual reason a fixed-rate payment moves.
Questions about your own file?
A loan officer licensed in your state can run your actual numbers.
Keep reading
For homebuyers1 min read
Preparing for pre-approval
What a loan officer looks at, the documents worth gathering early, and how pre-approval differs from pre-qualification.
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How your credit affects your loan
What lenders look at beyond the score, how credit shapes your options, and the moves to avoid once you're shopping.
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How much down payment you need
The 20% figure is a myth for most buyers. Here's what the low-down-payment programs allow and the trade-offs to weigh.
This guide is general information, not financial advice, a quote, or loan terms. Program availability and qualification vary. ALCOVA Mortgage LLC, NMLS #40508 (www.nmlsconsumeraccess.org). Equal Housing Lender.