Re: Mortgage payments
I always thought the lender required you to put the money fro taxes and insurance in escrow. One of the reasons they refer to the payment as "PITI" (Principal, interest, taxes & insurance). As it is "their" house, they want to be certain that the quarterly tax payments are made and that the house is insured. The reason you pay a year up front for insurance is so the escrow account can start accumulating next years insurance as soon as you start paying mortgages. They are looking to protect their investment.
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