[Daddy Paul]

Great read! My opinion is escrow accounts are a disaster. First you have to watch them to verify your taxes are paid. Guess what if they don’t pay them on time they pay the penalty out of your account. Secondly you are giving them an interest free loan. I had $3600 in an escrow account after my summer taxes were paid. This was well in excess of any insurance and taxes for the following year. The bank raised my escrow payments almost 100 per month to cover potential increases. I estimated a year later I would have $5100 by the same time next year. I was motivated to refinance and save 2% on my rate. Even after the refinance it took 3 months to get my then over $4000 back from this bank.