Escrow Education Center

Your escrow account holds money and pays the costs associated with real estate property taxes as determined by the property’s location.

Your escrow account holds money and pays the costs of these types of insurance:

•    Homeowners
•    Flood (if required in your property’s area)
•    Private Mortgage Insurance (PMI) (if required)
•    Mortgage Insurance Premium (MIP) (if required)
 

PMI is a type of insurance often required on conventional loans when the homeowner has less than a 20% down payment. It protects the mortgage lender if the account goes into default or foreclosure.

Under federal law, you can request early PMI cancellation.  PMI can be removed, but certain requirements apply depending on your loan type and state, federal and investor guidelines.  Typically, the removal of PMI requires a minimum 80% home appraisal value compared to the loan amount. To discuss your options and/or start the removal process, email us at CustomerCare@MortgageFamily.com or call our Customer Care Department at 1-800-449-8767.

MIP is a type of insurance required on all Federal Housing Administration (FHA) loans. It protects the mortgage lender if the account goes into default or foreclosure. 

MIP removals are determined by the amount of your down payment and when you first took out the loan. Usually, MIP lasts 11 years or for the life of the loan.  To permanently remove MIP, you’ll have to refinance into a conventional loan type.