Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I got a good faith estimate from a lender.
It had a 3 month taxes, 15 month home insurance, X days of interim interest (i.e. outstanding number of days on a month when closing). All these were given under ESTIMATED PREPAYMENTS & FUNDS FOR ESCROW ACCOUNT.
If I would put down 20% i understand there is no PMI. So do I have an option to say I dont need escrow account? If yes, is that the conversation with lender or title company or realtor?
Not worried about paying the taxes and insurance directly.
I am scheduled to close sometime next week and I asked the lender to NOT escrow taxes and insurance. I told them that I frequently change insurance companies as I check the rates and keep the home and vehicles with the same insurance company...and that I will drive them crazy changing companies every few years. I also said that I like to do the taxes myself because every other year I 'stack' the taxes to take advantage of itemized deduction on my taxes. (Stacking--paying the second payment that is due in the following year before 12/31 of the previous year to have one and one-half years of taxes as deductible in one year.) They could also see on my tax returns that I did stack the taxes.
So you may be able to get this relief. I have with several lenders for a few different homes throughout the years, but you do need to ask them towards the beginning of the process. Once they get the account they do not like to give it up. And it is your lender you ask, no one else cares.
Oh and I wrote a check for the insurance and had to set it up prior to closing.
If you pay 20% down, most loans allow you to waive the escrow, however, most lenders then charge an "escrow waiver fee". That fee is usually .25 of the loan amount. You become a higher risk of foreclosure by waiving the escrow fee so they charge you to do it.
I used to have 2 mortgages without escrow but eventually converted them. Even if you consider yourself financially artful, it is easy to find your self making incremental catch-up tax payments the next year. I didn't like trying to beat the clock to stop my name from being published in the paper as "delinquent"
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
