This broker says he can get me a lower interest rate on my mortgage if I pay the taxes each month along with the mortgage to a bank. Is this for real or a scam?
Answers | 7
Forgive me for answering this question twice, but I want to make sure you have what you need to make a decision. Typically, lenders require that you escrow taxes and insurance though that's not always the case. When taking out a loan, most borrowers will create an escrow account where the taxes and insurance are paid along with the mortgage payment. I don't know of any banks that give you a lower interest rate for doing that. If so, it would be a minor amount at best, possibly one eighth of a percentage point. Can you provide any more details so I can give you a more complete answer?
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