Every year you should receive the following, if you don't receive them, then you need to go find them:
- Property tax bill
- Homeowner's insurance renewal, with next year's premium
- Escrow projection
You need to save the tax bill and insurance renewal. When you receive your escrow projection you need to confirm that it is accurate. If you're paying a PMI, now is the time to double check your equity and loan documents to see if you're still required to pay PMI, and what actions you'll need to take to cancel PMI.
As the year goes on, you need to confirm that your escrow is sending the right amounts to the right vendors. If you ever receive an unexpected check from your insurance/property tax for overpayment, it's NOT FREE MONEY! It's a sign that your escrow sent the wrong amount to somebody or sent the right amount to the wrong vendor. You need to deposit that check in your checking account, and then make an escrow only payment to get that money back into your escrow account.
If you wait for your escrow account to notice these errors, you are going to get stuck making large lump sum payments, or dramatically increased mortgage payments, to try to get your escrow back into the black.
Submitted March 28, 2017 at 01:33PM by llort_tsoper http://ift.tt/2nrGa1O
