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hi chris malouk with cross country mortgage here going to do a quick educational video on waiving escrow and what that means when you escrow you are adding your property taxes and your homeowners insurance to your monthly mortgage payment and going to go through some pros and cons on that what that actually means you know a lot of folks dont quite understand what how the escrow process works and and maybe give you another option to take a look at so when you apply for a mortgage or on your mortgage loan there are four components if you escrow one is the principal one is the interest one is the taxes and one is your homeowners insurance sometimes called pd or sometimes called piti the principal and interest those are the only two components that are actually affected by the loan terms you know basic basic terms the principle is the amount of money that youre borrowing that you have to pay back and then the interest is the cost of borrowing that money the taxes are actually dictated b
