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Are you talking about an earnest money deposit held in escrow? In my experience, it always becomes a portion of the total amount paid at closing. If you are buying a $100K house and have $5K in escrow as an earnest money deposit, you would then bring $95K plus closing costs to the closing.
I am assuming you are asking about escrow with regards to refinancing.
You escrow account holder has X number of days to refund you. It's usually within 30 days.
So when you refinance, you won't be able to apply the balance of your current escrow to a new one (that's if you are doing escrow with the new loan). This is important because depending on timing, you may end up having to put more money out than you normally do because you technically have two escrow at the same time.
When I sold my last houses, I received a check either that day (or wired to my bank the next day) in the amount of purchase price - mortgage payoff.
A few weeks later I received a check from the mortgage company with the balance of my escrow account (what they have saved to pay my taxes and insurance in the next year). I also got checks from the insurance company rebating the months I have paid for but won't own the house.
When I sold my last houses, I received a check either that day (or wired to my bank the next day) in the amount of purchase price - mortgage payoff.
A few weeks later I received a check from the mortgage company with the balance of my escrow account (what they have saved to pay my taxes and insurance in the next year). I also got checks from the insurance company rebating the months I have paid for but won't own the house.
Great! Thanks. Yep, I just went under contract so was wondering about mortgage escrow. The home owners is a little bonus I hadn't thought of. I'll take every refund I can get.
I believe in escrow is the amount for your taxes and home owners. I'm guessing the taxes, I'll have to pay for year 2013 right? I was thinking I might get a refund for that also but I remember now my realtor said I would have to pay for months I owned the house.
Thanks everyone!
Last edited by diddlydudette; 08-23-2013 at 12:42 PM..
Yes, they prorate the taxes - you pay the buyer for the portion of the year that you owned the house, and the buyer will pay the rest.
Bear in mind you are not paying the buyers, like writing them a check, but your part of taxes is taken out of your proceeds and credited to them.
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