Your Guide to Navigating Homeownership
While owning a home comes with new responsibilities, we’re here to make things easier for you. From understanding property taxes and homeowner insurance to managing escrow accounts and payments, we’ve got you covered.
Owning a home comes with many new responsibilities, but — don't worry — we're here to help you every step of the way. Let’s walk you through some important aspects of homeownership — including escrow accounts, property taxes, homeowner insurance, and payment options.
Understanding Escrow Accounts
An escrow account can make managing your mortgage payments easier by including your property taxes and insurance in your monthly payment. If you don't have an escrow account currently, you can always add one later.
If you choose not to have an escrow account, create a separate savings account and set up an automatic transfer from your checking account each month to help you save. Take the total of your property taxes and homeowners bills divided by 12 to help you be prepared for yearly property taxes and homeowners’ insurance. As an extra savings tip, you can easily rename your savings account to say “Escrow Account” to help keep your money organized!
Paying Your Property Taxes
If you have an escrow account set up, we will pay your property taxes on an annual basis. Both you and FAIRWINDS will receive the tax bill, and we will make the payment as soon as possible to avoid any additional fees from the county. If you do not have an escrow account, you will be responsible for paying your tax bill. Pay as early as possible to take advantage of any potential discounts available.
Evaluating Your Homeowner Insurance Coverage
While you likely already have insurance coverage from when you were buying your home, most standard homeowner insurance policies don't cover all possible hazards or disasters. You might want to consider additional insurance for floods or earthquakes — for example — depending on where you live. Explore different types of homeowner insurance policies and check with your insurance agent to see what options are available for you.
It’s also important to review your insurance policy every year to ensure you still have the right coverage. You can shop around and change policies at any time. If you do change policies, just be sure to send a copy of the policy to your financial and list us as “Mortgagee” if you choose a new policy.
Making Your Monthly Payments
Making your monthly mortgage payment on time is crucial. If you have a FAIRWINDS checking account, you can easily set up an automatic transfer each month to make your payment. If your payment is coming from another financial, you can utilize Bill Pay through your bank. You can also set up biweekly payments to pay down your mortgage faster and save even more.
Homeownership is a rewarding experience, and we're here to support you every step of the way. By understanding escrow accounts, property taxes, homeowner insurance, and payment options, you'll be well-prepared to manage your new responsibilities. Remember, we're always here to help. If you have any questions or need assistance, contact one of our mortgage lending experts at (407) 277-5045 Ext 22200 or email [email protected].