money1Escrow Accounts, also known as Impound Accounts, are non-interest bearing trust accounts in which a mortgage company holds funds aside on a monthly basis from the mortgage payment in order to pay one's taxes and home owner's insurance when they come due during the year.

Did you know that there is an upcharge on Conventional Loans to waive your escrow accounts?  With that said, interest rates are based on risk.  The higher the risk, the higher the interest rate charged.  Unpaid property taxes pose a risk to mortgage companies.  If the property taxes go unpaid, the local governing body, i.e. county or district, can confiscate the property for unpaid taxes leaving the mortgage company at risk of losing it's collateral on their outstanding loan.  Therefore, mortgage companies charge a higher interest rate to offset the risk of waiving escrow accounts.

FHA and VA Loans will not allow a borrower to waive the Escrow Accounts at all.  Waiving of Escrow Accounts are also subject to some State's laws.


For the best Albuquerque Mortgage Call Steve Sheldon. Don’t forget if you or any of your friends and family are interested in Albuquerque Mortgages, Santa Fe Mortgages, or any mortgage in New Mexico contact Steve Sheldon at Superior MortgageGroup a Division of Goldwater Bank N.A.

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