- 2018 Posts

  1. FHFA Conforming Loan Limits 2019
  2. How 2018 Market Trends Will Affect Wisconsin Buyers
  3. No Money Down Home Loans Appleton Oshkosh Green Bay Wisconsin
  4. Benefits of using FHA for your home loan
  5. Benefits of being a homeowner
  6. Wisconsin local lender vs online lender
  7. Home Loan Pre-Approval
  8. No Money Down Home Loan
  9. Serve and Support Loans
  10. Debt Consolidation and Cash Out

+ 2017 Posts

+ 2016 Posts

+ 2015 Posts

What to know about Escrow for Taxes and Insurance with your Home Loan

December 08, 2015

Many lenders require you to escrow for property taxes and homeowner’s insurance. Let’s discuss a few basics about what it means to escrow.


Each month, you will pay a portion of the taxes and your home owners insurance with your mortgage payment to your escrow account. This amount is determined by dividing your estimated annual property taxes and homeowner’s insurance by 12 months.  For example, if your annual property tax bill is $1,000 and your homeowner’s insurance is $200, you will pay $100 a month.


Most people find it easier on the budget to pay their taxes and insurance on a monthly basis. It takes extreme discipline to put this money away on your own every month, so including it with your mortgage payment takes the worry out of paying these important bills.


Many loans require you to escrow, depending upon your loan type and your lender’s requirements. Your mortgage payment will be set up to include your monthly payment for the escrow account, paying these directly to the lender included with your mortgage payment. The lender then maintains a special account on your behalf to save the money paid toward your taxes and insurance. At the end of the year, this money is then distributed – usually directly to your county tax treasurer and insurance company.


Property taxes fluctuate with increasing or decreasing property values and home assessments made by your county treasurer. An estimated amount is used to determine the property taxes for the coming year.  Usually lenders err on the side of caution, and will set up your escrow account with a two month cushion, allowing for possible fluctuations in your tax bill.


GSF Mortgage specializes in many types of home mortgages, and can advise you on which loan is right for your needs. GSF services the Greater Green Bay, Fox Valley, and Fond du Lac areas. 


Ron Meyer

GSF Mortgage Corporation

300 Patriot Dr. Little Chute, WI 54140

(920) 788-9608 


NMLS #1018 & #222668