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Listen "Principle, Interest, Escrow...What are They! How do they Affect Your Mortgage Payment?"
Episode Synopsis
Let's just say it on an average customer, so not any weird stuff or anything like that. What is fully in a mortgage payment when I looked at my little statement?Your principal payment, okay, that is that's what you're paying that's going to pay down your mortgage. Your interest, the interest is kind of the cost of the loan. That's what you're paying every month to have that mortgage.And that is mostly known as P&I.Yes, P&I is principal and interest and then you have your escrows, which are your property taxes and your homeowner’s insurance, you may have mortgage insurance in there also. And then you could have flood insurance, something like that that can be in there also.Now your escrows with the exception of flood, if you have enough down, usually that's 20% down or more, can be opted-out of. That’s the escrow for taxes and insurance, the vast majority of people escrow, it's easier, it doesn't cost anything. And years and years ago, they changed the law, because servicers were messing with the escrows. Now, there's no benefit. And there are huge penalties for messing with the escrows you can't earn any interest on it. So there's no benefit in doing anything with it. I have not I have not seen you in 15-18 years, any problems with escrows?Nobody messing with escrow. Now taxes go up, insurance goes up so you can be short. Or if you bought a new home, taxes are definitely going to go up, you know, there can be things that happened that are going to change it. The thing is, with payment through your principal and interest payment, if you're on a fixed rate mortgage, your principal and interest payment won't change.And yes, and I think that insurance can Yep. And I think especially...Connect with Us:For more episodes of Indy's Real Estate Gurus, visit IndysRealEstateGurus.com. Join our community for more insightful real estate discussions, tips, and expert advice. Don’t forget to subscribe to stay updated on the latest episodes! Follow Us on Social Media: Facebook: Indy's Real Estate Gurus Twitter: @IndysREgurus Instagram: @indysrealestategurus Contact Us:Have questions or want to get in touch? Email us at [email protected] or call or text us at 463-223-9592. We love hearing from our listeners! Support the Show:If you enjoy the podcast, please leave us a review on your favorite streaming platform. Your support helps us grow and reach more real estate enthusiasts like you!
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