other fees for which you’re responsible, in addition to your down payment. Closing costs are generally paid in one lump sum. You may also choose to set up an escrow account, depending on your mortgage agreement, to avoid paying large sums for homeownership costs. Essentially, an escrow is a savings account designed to help you pay your mortgage, property taxes, and even homeowner’s insurance in smaller, periodic installments. Your lender usually deals with payments from your escrow, which means less stressful financial management for you.
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