Understanding Escrow Analysis: Avoiding Negative Balances

In episode four of The Borrow of Better Way podcast, host Matthew Bell, a 20-year mortgage veteran, delves into the intricacies of escrow accounts. Matthew explains how lenders use these accounts to pay taxes and insurance on behalf of homeowners, ensuring timely disbursements and preventing account deficits. He outlines the purpose of escrow analysis, the importance of ensuring sufficient monthly withholdings, and actions homeowners can take to proactively manage their accounts. Essential tips include verifying monthly payment adequacy, preparing for possible increases, and exploring options if faced with negative balances. By understanding and anticipating changes in escrow, homeowners can avoid financial surprises and maintain better control of their mortgage payments.

00:00 Introduction to Episode Four
00:14 Understanding Escrows and Impounds
01:45 Escrow Account Analysis Explained
03:03 Proactive Steps to Manage Your Escrow Account
05:58 Handling Negative Escrow Balances
06:27 The Importance of Proper Escrow and Tax Planning
07:37 Dealing with Over-Collected Escrow Funds
08:45 Final Thoughts and Recap