How does Escrow work with 1st Lien HELOC?

With a 1st lien HELOC, you will be responsible in paying your property taxes and insurance. However, this can be used as an advantage to save more money and possible even get discounts. Just treat them like any other bill that comes in and pay them when they’re due with money from the HELOC.

Here’s a tip for insurance premiums. Instead of paying your homeowner insurance premiums every month. Our recommendation is to switch it to annual premiums (once a year) and negotiate for a discount. Most insurance companies will offer a discount to switch it to annual payments. What’s even better is that you can delay any insurance payments which will help reduce the average daily balance on the HELOC, ultimately giving you extra savings.