How to Compare Prepaid Items in Loan Offers

Posted by on February 12, 2022 · Leave a Comment 

Remember the initial escrow payment, the 2-months you deposit at closing? The lender calls it a cushion. It’s extra money that the lender holds in reserve. If your insurance or taxes increase, the lender would use the cushion to pay for it, and then increase the escrow portion of your monthly payments.

On the other hand, if by some miracle your insurance or taxes decrease, the lender would lower your escrow and your total monthly payment would decrease. Since lenders may not hold more than a 2-month cushion, you could get an escrow refund check. Read more

Filed under affordable title loans · Tagged with

  • Huddleston Tax CPAs / Huddleston Tax CPAs – Bellevue CPAs
    Certified Public Accountants Focused on Small Business
    40 Lake Bellevue Suite 100 / Bellevue, WA 98005
    (425) 273-6512

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.