Posted by Dimpil on October 24, 2003 at 05:17:47:
I escrow 6 months of PITI. Yes it’s a lot but then the other side is, IF I had to make the payments for any reason I’d rather not scramble to come up with the payments, I’d feel more comfortable with it there ready to go incase of…But I’m over cautious as I’ve seen too many people miss payments on rentals relying on the renter to pay them who sometimes is late or vacates.
Now when I’ve established myself, have a working line of credit, have cash reserves I’d cut my escrow back to 3 months as I’d have enough financial back up to withstand a few deadbeats.
That my view.