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Old 02-04-2009, 09:29 AM
 
Location: Sloooowcala Florida
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I just bought a house in January. I live in Florida and would like to know what I would have to do in order to arrange it so that I can pay my own property taxes instead of having them added to my mortgage payment and put into an escrow account. My mortgage is with Wells Fargo, and I paid 10% as my down payment. Any information is appreciated.
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Old 02-04-2009, 09:53 AM
 
Location: Minnesota
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Quote:
Originally Posted by smartygurl View Post
I just bought a house in January. I live in Florida and would like to know what I would have to do in order to arrange it so that I can pay my own property taxes instead of having them added to my mortgage payment and put into an escrow account. My mortgage is with Wells Fargo, and I paid 10% as my down payment. Any information is appreciated.

A lot of banks have a period of time where if you start the escrow process, you need to keep it open. I know US bank is you have to have it for 6 months and then you can cancel. But there is a penalty for canceling it so make sure you ask that question. I know if we wanted to cancel our escrow it would cost us a little over $1000.00 to do so.

Kristine
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Old 02-04-2009, 10:23 AM
 
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if you're closing on a house and you have 4 months of texas in escrow, does that mean you dont have to pay taxes for those first 4 months, or do you pay each month and get that money back at the end of the year?
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Old 02-04-2009, 10:37 AM
 
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Escrowing becomes optional with 20% or more down, but this has to be decided before the loan closes. There is a .25% charge (closing cost) to not escrow.

Once you have 20%+ equity and have been in the loan a few years, they will probably let you end your escrowing. Until then I doubt it, but you could try.
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Old 02-04-2009, 03:08 PM
f_m
 
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This highly depends on who your loan is with, so you would have to contact the loan company on the details. Some places, like my credit union, do not do escrow.
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Old 02-04-2009, 03:21 PM
 
Location: Downtown Orlando, FL
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It also depends what kind of loan you have....I believe with an FHA, you have to keep it 5 years before you can get out of escrow. I could be wrong though......
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Old 02-04-2009, 03:31 PM
 
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I had a loan sold to Wells Fargo. It had escrow for my taxes. I called them up and asked if they would allow me to cancel escrow. They had to submit some internal paperwork to see if it was allowed. Called back a week later and the sent me a check for my escrow balance. HOLLA!

As far as the 4 month balance thing. What they do is use that money as a BUFFER. So at the end of the year when they go to pay your taxes and home owners for you there is usually a left over balance. They are by LAW only allowed to keep a certain % or $ amount over a full years billed taxes/insurance. So they usually will cut you a check after that for a % of that if warranted.
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Old 02-04-2009, 05:45 PM
 
4,546 posts, read 11,561,578 times
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Originally Posted by ilovebdj View Post
It also depends what kind of loan you have....I believe with an FHA, you have to keep it 5 years before you can get out of escrow. I could be wrong though......
You are correct.
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Old 02-05-2009, 12:00 AM
 
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This is really something that only Wells Fargo can answer, as I'm pretty sure that every lender has different rules. There are probably some that require it in all cases and others that let you get out of if certain conditions are met (which may include a fee). In general, I think it's best to be upfront about this, as I've heard it's hard to stop escrowing if you've already started.
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