Hazard Insurance

[golfgal]

Originally Posted by darkblue

So who gets the interest that is generated from escrow account?
The home owner???
When we pay the insurance for one year in advance, will it be refunded when we pay the mortgage in full?

Typically what happens with your escrow is that your mortgage lender does an annual review of your escrow account to determine if you have enough or too much money in your account to cover your upcoming expenses. If you have too much, they send you a check, if you don't have enough they either ask you to pay the difference in one check or increase your mortgage payment for a year to make up the difference. You see this happen when you have a large increase in your taxes, for example.

As for not having insurance after you pay your mortgage in full, you will KEEP paying for your insurance for your home even after your mortgage is paid in full, you will just do that on your own. You don't want to not have your house insured, that would be very irresponsible.

[Karla with a K]

Originally Posted by TimtheGuy

You just got the lender to "eat" the 1/4 pt. fee. Which means you could have got him to "eat" 1/4 pt. in fees if you had decided to escrow too. He obviously had enough profit built in to the deal to do so.

tim
this was the one time I was glad for my background in the "business" I was able to cut some of the junk.
Thats why I think it is so great when the folks here post info on what fees you can negotiate.

I don't mind someone making a profit be it on a mortgage or car but I don't want to fund their 2 week vacation to a villa in Tahiti