Escrow Payments Quiz

Freedom Mortgage is a mortgage lender and is not affiliated with the U.S. government, HUD, FHA, VA, or any other government agencies. We do not provide legal, tax or investment advice.

Take Our Escrow Payments Quiz

Take our Streamline Refinance quiz and find out!

Freedom Mortgage establishes an escrow account for your mortgage.

Q1: True or False?

TRUE

FALSE

Wrong! True. It is an account, established in connection with your mortgage loan, and managed by Freedom Mortgage, to pay your real estate taxes, hazard insurance and if required, mortgage insurance. If you have an escrow account associated with your mortgage, part of your total monthly mortgage payment will be used to fund the escrow account.

HINT

Try out our Refinance Calculator

Q2: True or False?

You need to pay your property taxes and homeowners insurance in a lump sum each year.

TRUE

FALSE

Right! False. The cost of your taxes and insurance is a yearly amount, but it is divided by 12 and added to your monthly mortgage amount, so you don’t have to pay for it all at once. The money is put into an escrow account to pay the tax and insurance bills when they are due.

Q3: True or False?

An escrow account can also be used to pay any homeowners association fees and your personal insurance.

TRUE

FALSE

Right! False. Escrow funds only pay for real estate taxes, hazard insurance and mortgage insurance (PMI/MIP), if required.

Right! True. It is an account, established in connection with your mortgage loan, and managed by Freedom Mortgage, to pay your real estate taxes, hazard insurance and if required, mortgage insurance. If you have an escrow account associated with your mortgage, part of your total monthly mortgage payment will be used to fund the escrow account.

Wrong! False. The cost of your taxes and insurance is a yearly amount, but it is divided by 12 and added to your monthly mortgage amount, so you don’t have to pay for it all at once. The money is put into an escrow account to pay the tax and insurance bills when they are due.

Wrong! False. Escrow funds only pay for real estate taxes, hazard insurance and mortgage insurance (PMI/MIP), if required.

Q4: True or False?

You need to send your mortgage company the latest tax and insurance bills when you receive them.

TRUE

FALSE

Right! False! Your mortgage company will receive the bills directly from your local tax office and insurance company. Any notifications you receive about your taxes from your town or insurance are just for your information and can be filed away. Your mortgage company will pay that on your behalf with the balance in your escrow account.

Wrong! False! Your mortgage company will receive the bills directly from your local tax office and insurance company. Any notifications you receive about your taxes from your town or insurance are just for your information and can be filed away. Your mortgage company will pay that on your behalf with the balance in your escrow account.

Q5: True or False?

If your real estate taxes decrease you can get money back from your escrow account.

TRUE

FALSE

Right! True. If the overage is $50 or greater, we’ll send you a refund check. If it’s under, we’ll apply it as a credit to your escrow account.

Results

Wrong! True. If the overage is $50 or greater, we’ll send you a refund check. If it’s under, we’ll apply it as a credit to your escrow account.

Your Results

Correct

Incorrect

VIEW RESULTS

Start Over

Has busting a few myths made you want to consider a streamline refinance? It’s easy to get started right now. Call xxx-xxx-xxxx today or get started online.

Get Started