What are the Benefits of Including my Homeowner’s Insurance Premium in my Monthly Mortgage Payment?

Answer:
Your mortgage lender may give you the option of paying

your taxes and insurance separately or including them in your mortgage payment. One of the greatest benefits of including your homeowners insurance premium in your monthly mortgage payment is convenience.

A special account, called an “escrow” account will be opened and monies intended to pay your homeowners premiums will be held here until your payments are due. The amount escrowed is reviewed on an annual basis. Depending on whether there are sufficient funds to cover your taxes and homeowners insurance premiums – you may see an increase or decrease in your monthly mortgage payments. Ultimately, it’s your responsibility to see that your property taxes and homeowners insurance are paid – even if your mortgage company is the one making payments.