When you own a home, you have to pay your homeowner’s insurance and the tax on your Santa Cruz real estate. Depending on the state in which you live and your lender, you may be required to make monthly payments into an escrow account so your lender can pay your taxes and insurance, or you may have the choice to pay them yourself.
Escrowing homeowner’s insurance and Santa Cruz real estate taxes has advantages and disadvantages. If you have a choice, here are several things to consider when deciding whether to escrow or not to escrow your real estate tax and insurance.
Advantages to Escrowing
• No lump sum to pay. The biggest advantage to escrowing your real estate tax and insurance is knowing that the money is there when it’s needed. Your monthly…