Re-fi with large escrow amount

[Gunner0325]

Originally Posted by Momma_bear

Banks mess up escrow accounts all the time. Then you have to fix the escrow account which can be a nightmare.

Chase once sent me a letter telling me that my mortgage payment was increasing by $500 per month. My taxes at the time were around $6500 per year so I found it alarming that my escrow account could go up by $6000 per year. When I analyzed the payments it turned out that Chase had charged someone else's payments to my account.

That just happened to us last year as well! And it was through Chase..Hahaha! Luckily our mortgage broker is a good friend of ours and took care of the situation for us so we really didn't have to do anything accept freak out when we opened up our mortgage statement!

[SmartMoney]

Have you contacted your current lender to find out how much you have in deposit in your escrow account? Those funds will be refunded to you within 30 days of payoff. Also, your payoff and prepaid interest is what gives you the feel of skpping a payment......So you are financing a month's interest in there........you can bring your normal payment to closing and knock your balance down a bit. (Same with the escrows......"loan" yourself the funds to bring to closing and then wait for the refund to reimburse you).

So many people thing they are getting a "free" month, but they are actually financing that payment and escrows for another 30 years. No one gets a free ride.......