- Good points, but isn't the whole idea of escrow to simplify things? I mean, I get wanting to stay sharp on finances, but escrow doesn't have to mean total autopilot...
- Personally, I use escrow for property taxes and insurance—just easier for me. But I still do quarterly reviews to double-check everything. Best of both worlds maybe?
- Curious, have you ever found mistakes or unexpected issues by doing manual check-ins?
I've been using escrow for taxes and insurance ever since refinancing a couple years back, mostly because it was just bundled into the deal. Honestly, I wasn't even thinking about it much until last year when I randomly decided to check in on things. Turns out my lender had miscalculated my property taxes—nothing huge, but enough to throw off the escrow balance and cause a small shortage.
It wasn't a disaster or anything, but it did make me realize that escrow isn't totally foolproof. Now I do quick checks every few months just to make sure everything lines up. It's not like I'm obsessing over every penny, but it's nice knowing I'm catching any weirdness early instead of getting surprised later on.
So yeah, escrow simplifies things for sure, but a little manual oversight never hurts...
Good call checking your escrow regularly. I've seen similar miscalculations pop up with clients—usually minor but still annoying. Escrow's convenient, but nothing beats occasionally double-checking things yourself to avoid surprises later on.
Escrow definitely has its perks, but honestly, I've seen instances where relying too heavily on escrow can actually make people complacent. A client of mine once assumed escrow would catch everything, stopped checking altogether, and ended up with a pretty hefty shortfall at year's end. Not saying escrow isn't helpful—it totally is—but sometimes convenience can lull us into a false sense of security. Always worth staying alert and keeping an eye on things yourself now and then...
Good point about complacency creeping in... I've seen similar situations myself. One thing I always recommend to clients is setting a quarterly reminder to quickly review their escrow statements. Doesn't have to be a deep dive—just a quick glance to make sure everything lines up. Catching discrepancies early can save a lot of headaches down the road, and it keeps you engaged without feeling overwhelmed.
