truegrid said:
Never had interest bearing with any escrow mortgage accounts as well - this is why I find it odd not more regulated/audited around this process.
mammabear said:
Some mortgage programs REQUIRE an escrow account. And yes, they need a cushion due to teh schedule of tax payments due here in NJ. Unfortunately, when you refinance, and the wrong tax numbers are used, you can easily get a shortage letter.
FYI...escrow accounts are highly regulated by law. Lenders are only allowed to keep a certain cushion. It's usually around 2 months.
Tom_R said:
Tarheeels,
Then follow the advice above and ask the mortgagee to stop your escrow payments, and send you the funds it presently holds.
When I realized I wasn't getting interest (about thirteen - fourteen months in) I asked Countrywide to stop; and it agreed, no questions no argument.
Even if your loan documents require non-interest escrow, ask. Tell them you want interest or a release from escrow. What can it hurt?
Good luck.
TomR
I believe her point about Countrywide is that they no longer exist and have not for several years. Thus indicating how long it's been since you might have done this. But I do agree it can't hurt to ask. The worst they can do is say no.Tom_R said:
mammabear,
What is the problem with asking?
And what does Countrywide having been my mortgagee have to do with anything?
TomR
wendy said:
campbell29 said:
We have never paid our taxes as part of our mortgage. I think for the first 3 months, they require it. But after 3 months have elapsed, just tell them you don't want to escrow for taxes. Then you pay the town directly every quarter. The bank should also refund you whatever they have included in escrow so far.
Good to know. I'll check it out. Thanks.
???mammabear said:
Tom_R said:
Tarheeels,
Then follow the advice above and ask the mortgagee to stop your escrow payments, and send you the funds it presently holds.
When I realized I wasn't getting interest (about thirteen - fourteen months in) I asked Countrywide to stop; and it agreed, no questions no argument.
Even if your loan documents require non-interest escrow, ask. Tell them you want interest or a release from escrow. What can it hurt?
Good luck.
TomR
Tom, you need to get some updated knowledge on this. Countrywide?!? Our business is very different now.
I don't mean to tell you your business, but I'm unable to find anything that indicates that the points are a fee from Fannie (or Freddie). Fannie seems to indicate that it's at the lender or servicer's discretion as to whether to allow escrow to be waived.mammabear said:
Awesome @TarheelsInNJ!!
As I said, some lenders will allow you to "waive escrows" and some will not. Much of it can depend on your loan to value and credit history. In any case, in this day and age, it's much harder to opt out.
Also, FYI...if you opt to waive escrows on a new loan, the add to fees is .25. That's a standard Fannie add.
ParticleMan said:
I don't mean to tell you your business, but I'm unable to find anything that indicates that the points are a fee from Fannie (or Freddie). Fannie seems to indicate that it's at the lender or servicer's discretion as to whether to allow escrow to be waived.mammabear said:
Awesome @TarheelsInNJ!!
As I said, some lenders will allow you to "waive escrows" and some will not. Much of it can depend on your loan to value and credit history. In any case, in this day and age, it's much harder to opt out.
Also, FYI...if you opt to waive escrows on a new loan, the add to fees is .25. That's a standard Fannie add.
Can you cite something indicating that the fee is from the GSEs?
Tom_R said:
???mammabear said:
Tom_R said:
Tarheeels,
Then follow the advice above and ask the mortgagee to stop your escrow payments, and send you the funds it presently holds.
When I realized I wasn't getting interest (about thirteen - fourteen months in) I asked Countrywide to stop; and it agreed, no questions no argument.
Even if your loan documents require non-interest escrow, ask. Tell them you want interest or a release from escrow. What can it hurt?
Good luck.
TomR
Tom, you need to get some updated knowledge on this. Countrywide?!? Our business is very different now.
I have an escrow shortage that amounts to a $15/month increase payment to cover it...plus an additional $15 a month to maintain the current amount....yet I am being charged $115 a month extra...as there is some other monthly fee involved...it makes no sense...
jmitw said:
I have an escrow shortage that amounts to a $15/month increase payment to cover it...plus an additional $15 a month to maintain the current amount....yet I am being charged $115 a month extra...as there is some other monthly fee involved...it makes no sense...
Ask mammabear.
TomR
Usually once per year the mortgage company will correct any shortfall/surplus in the escrow account. This is typically a one time payment to correct the shortfall and you then pay the new monthly rate.
I haven't had a mortgage with an escrow account in about 15 years. The last time I had one the mortgage company "forgot" to pay my house insurance bill and 6 months later I got a letter from Allstate saying my insurance had been cancelled -- 6 months ago! It was also around the same time that they announced a higher payment for a bigger escrow cushion (they wanted a $3K cushion). That's when I switched to a non-escrow mortgage. This house I'm buying requires an escrow account, but my broker tells me I can switch it after 3 months -- which is what I will be doing. I have no problem paying my taxes quarterly and my homeowners' insurance whenever it's due.
If you have at least 25% equity in your home, and you are paying more than today's current rate, refinance and ask for a non-escrow mortgage. You pay your own insurance and taxes, and don't have an average escrow balance of several thousand dollars which the bank is essentially holding hostage. A non-escrow mortgage does not cost any more than a traditional escrow mortgage, but they like to see at least 20% equity. But since all appraisers discount about 10% from likely sale price, you will need 25-30% equity in order to qualify.
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FYI...escrow accounts are highly regulated by law. Lenders are only allowed to keep a certain cushion. It's usually around 2 months.