The Product — EBS Q & A
What Happens With "Escrow" Payments?
It is common practice to send money above the normal loan payment to your lender for the purpose of paying taxes and insurance premiums. These funds are deposited into an escrow account, from which the taxes and insurance are paid when due. With the EBS program, this extra amount will also be applied to principal once per year. This extra amount enhances the interest savings, equity buildup, and reduction of the loan term. It is very important for you to keep GemCap Equity Management, Inc. informed of changes in your escrow payments.
It's common for your taxes and insurances premiums to increase from time to time. If we are not informed of changes, the required monthly payment will become deficient and create avoidable problems.