Houston Metro 281.379.2000  Fax 281.251.8888  rodney@powell-realestate.com CLOSED SUNDAYS 20831 Rosehill Church Rd Tomball, TX 77377 Easy Site Navigation Back to Home Page Help Selling Real Estate Listing Real Estate Guidelines to Market Value Buying Real Estate Get New Listings E-Mail Property for Sale by Area Acreage Communities Client Testimonials CLIENT TESTIMONIALS Get to Know Your Real Estate Professional When I think of the word TRUST - it means I know I can count on you all the time. That is what I want clients to sense about me.   That they can count on me all the time, every single day they can trust that I am telling them the truth. It is essential that POWELL Real Estate can give clients a measure of comfort by being someone they can trust completely.   I take that very seriously. - Rodney POWELL

P O W E L L - R E A L E S T A T E . C O M Get the Straight Facts Why Mortgage Escrow Accounts ?   The History of Escrow Accounts Mortgage escrow accounts came into being in the 1930's when many Americans were losing their homes in foreclosures because of late tax payments. To help ease the burden on homeowners who had to come up with large, lump sum payments at tax time, lenders agreed to take on the responsibility by collecting smaller monthly sums from homeowners along with their mortgage payment. In 1934, the government mandated that lenders manage escrows on all FHA insured mortgages. This then became the standard practice for all mortgages.   Why Mortgage Escrows ? Mortgage escrow accounts ensure that homeowners' property taxes, fire and hazard insurance premiums, mortgage insurance premiums and other escrow items are paid in a timely fashion. They are a guarantee that there is always enough money to pay these bills when they are due so that the homeowner avoids the risk of lapsed insurance coverage or delinquent taxes.   Who's Protecting the Homeowner ? Escrowing is governed by the Real Estate Settlement Procedures Act of 1974 (RESPA), administered by the U.S. Department of Housing and Urban Development (HUD). Lenders must manage their escrow accounts in compliance with this federal law and with the interpretations set out by HUD. In addition, a 1990 housing bill, requires lenders to issue itemized statements of escrow accounts to borrowers on an annual basis. While many lenders are already providing homeowners with regular statements of their escrow accounts, the new law should ensure that every lender follows this practice. by HUD.   What Escrow Accounts do for Homeowners   Guarantee the bills are paid on time The most obvious advantage of escrows is that they automatically budget the borrower's tax and insurance responsibilities over the course of a year. Homeowners do not have to worry about coming up with several large, lump sum payments, each with different due dates, throughout the year. If there is ever a fire in the home the homeowner is assured that the home is protected by up-to-date insurance.   Unexpected increases are taken care of Because of escrows, homeowners also do not need to worry about calculating unexpected increases in their taxes or insurance premiums. It is the responsibility of the lender to allow for possible increases in these payments. Even when there are not enough funds in a mortgage escrow account to meet increased tax or insurance payments, the lender typically covers the bill without charging interest to the borrower. It is very common for lenders to pay taxes and insurance premiums when they are due even though all the money for these bills has not yet been collected from the homeowner.   Mortgages have lower rates and down payments because of escrows Escrows protect the interests of investors in home mortgage loans. By making home mortgages more attractive and secure as investments, escrowing has led to a healthier mortgage market. As a result, loans with better terms and lower down payments are available to homebuyers.   Local governments save money Escrow accounts also benefit local governments by providing a more efficient, less expensive means of tax collection. Rather than working with millions of homeowners, municipalities need only collect from a few hundred lenders.   How Does the Lender Come Up with My Payment ? The law is very specific in setting limits on the amount that the lender may collect. The lender may require a monthly payment of 1/12 of the total amount of estimated taxes, insurance premiums and other charges reasonably anticipated to be paid. Plus, the lender may collect an additional balance of not more than 1/6 of the estimated annual payments. If the lender determines there will be or is a deficiency in the escrow accounts, the law permits the lender to require additional monthly deposits to avoid or eliminate the deficiency.   What Happens when My Loan is Transferred ? When the servicing of your loan is transferred to another lender, the new lender takes on the responsibility of managing your escrow account. At that time, the new lender may examine your escrow account to make sure that the funds being collected are sufficient to cover all payments that are to be made. If the new lender feels that the amount collected must be adjusted, you will be notified of the change in your monthly payment. If a conversation about your specific real estate needs is appropriate, I'll be delighted to talk with you.   Remember, my goal is to help you reach yours. Rodney POWELL Your LAND Professional 281-379-2000 When You Need a REALTOR ® Who Are You Going to TRUST ? If you have questions or need immediate assistance, just send an e-mail or call 281-379-2000. YOUR RESULTS WILL COUNT !

home   acreage communities   property by area   listing form   testimonials   TERMS OF USE.   Using this web site constitutes your acknowledgement of all disclaimers and agreement to hold harmless POWELL Real Estate and its associates. A reasonable attempt has been made to provide accurate and authoritative information in regard to the subject matter covered.   The information contained within this site is believed to be reliable but not guaranteed and should be independently verified. As always with real estate, when considering purchase, sale, rental, financing, refinancing, or any transaction, be certain to protect your interests.   Do NOT sign anything without professional assistance from a broker, attorney, accountant, licensed inspector, or other expert professionals as appropriate. Neither the content nor the use of this site implies agency.   Rodney POWELL is the REALTOR® of record for this web site and is licensed by the State of Texas as a Real Estate Broker. Information relating to real estate developments on this web site DOES NOT imply affiliation with any developer, neighborhood board, or property management. REALTOR® is a trademark of the National Association of REALTORS®.   All other trademarks are the property of their respective owners, and are hereby acknowledged.   © 2002-2008 POWELL Real Estate. All rights reserved.