Finance Globe

What is Escrow?Escrows are used in other circumstances, but the most widely known types of escrows are mortgage-related. The escrow account is managed by the mortgage lender. The lender collects escrow payments from the borrower, and keeps the money in an escrow account until the tax or insurance payments are due. The lender takes care of paying those bills, and the borrower usually doesn't have to do anything else. When you hear about principal, interest, taxes,...

Understanding how mortgages workWhen you choose to finance a home, the property loan is called the mortgage. The amount of the mortgage, also known as the principal, will be determined by the price of the property, minus the down payment. A larger down payment will reduce the amount of the mortgage, and will result in smaller monthly payments. The principal is reduced gradually with each monthly payment. Your monthly payments will be mostly interest in the...

Your home is a valuable asset. It can be a “forced savings” even if you haven’t made any other investments. This investment can be a safety net if you come across a need for money. It takes many years to pay down your mortgage and build up equity, but over time it can amount to much more than you would ever be able to put away otherwise. Home equity is the amount of the value of...