“Portlandia” on the IFC channel is one of my favorite TV shows. The sketch comedy program pokes fun at the lives of millennials in Portland, Oregon. Last week, “Portlandia” was all about buying, selling and renovating houses.
One of the best moments from the episode depicted how first-time homebuyers don’t understand the concept of escrow.
Click the video below to watch!
I often need to define critical mortgage terms for first-time homebuyers in Virginia Beach, Norfolk, and Chesapeake — like the two in the video. I hope you find the mortgage terms below useful for your own clients (no matter their age).
Mortgage payment: Monthly amount which includes principal and interest payments based on terms of the loan, interest rate and loan amount as well as real estate taxes and insurance (ex: homeowners and flood).
Escrow: An account to pay for taxes and insurance on the home when they come due. The funds for the account come from your monthly mortgage payment, and the lender makes the payments on your behalf.
Featured image: GotCredit (flickr)