By Jack Guttentag
This is entirely within the borrower’s discretion. I didn’t waive escrow on either of my mortgages because I like to keep my life as simple as possible, and adding a set amount to my mortgage payment every month to cover taxes and insurance was as simple as it got. The borrowers who waive escrow either are control freaks or fear that the lender will screw it up, which occasionally happens. When it does, it can be a nightmare for the borrower. I was not deterred by this risk, however, because I felt that the risk that I would screw it up was greater.
Jack Guttentag is professor emeritus of finance at the Wharton School of the University of Pennsylvania. Comments and questions can be left at http://www.mtgprofessor.com.
©2013 Jack Guttentag
Distributed by MCT Information Services (www.mctdirect.com)
Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com