A couple of weeks ago I wrote about mortgage property tax and insurance escrow accounts: why mortgage companies require them and what to do when your escrow account has a shortage.
Mortgage escrow accounts for paying property tax and insurance are a bad deal for consumers. Borrowers essentially make an interest-free loan to the mortgage company.
Thankfully, there’s a simple way to stop having to pay into an escrow account: pick up the phone and ask.
That’s what I did. I called Chase and asked them if they’d waive the escrow requirement on my mortgage. They said they’d review it and get back to me in about a week.
Sure enough, I received a letter one week later saying the escrow requirement was waived at no charge. A few days later I received a check for the amount that was already in the account.
Some mortgages are required to escrow taxes by law, but many aren’t. If you can handle the mental strain of writing one big check each year for your property taxes, this is a smart financial move.