But the truth is, home equity loans are more likely to hurt your finances than they are to help. Did your lender tell you it can help you get out of debt? Or live well during retirement? Or pay for that renovation you want? Be aware that in some states, such as Hawaii and California, escrow is referred to as impounds.So, you’re thinking about getting a home equity loan. It’s a great way to allow you to make one mortgage payment a month while saving you the hassle of remembering to make ongoing annual payments for your insurance and property taxes. Your lender will manage the escrow account and submit payments for your property taxes and homeowners insurance when they are due. Then each month you’ll pay that amount along with your standard mortgage payment. So how does it work? Your lender will first calculate how much your property taxes and homeowners insurance premiums are for the entire year. Next, they’ll divide the total by 12 to show how much escrow payment you’ll owe per month. The goal of an escrow account is to make your life as a homeowner as easy as possible. We compare an escrow to a referee in a football game-the neutral third party who takes no sides and makes sure everyone is following the rules until the game is over. For more information, go to Many mortgage lenders hold money that you’ve paid in an escrow account to cover three things: Your property taxes, homeowners insurance, and in some instances even your homeowners association (HOA) fees. Churchill Mortgage Corporation, NMLS #1591 ( is an Equal Housing Lender. By submitting your information, you are consenting to being redirected to a third party site, Ramsey Solutions does not warrant third party sites, and it is not responsible for the information contained in such sites. Any services rendered by Churchill Mortgage are solely that of Churchill Mortgage. Transacting business or communicating with Churchill Mortgage is at your sole discretion. Ramsey Solutions and its affiliates do not warrant the services or products of Churchill Mortgage, nor does Ramsey Solutions make any promise or guarantee related to any services rendered by Churchill Mortgage.

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