Lender really misestimated my Property Tax on Loan Estimate, now I owe $2300 more in closing costs. Options??? (interest rate, real estate)

[Lowexpectations]

Why are you escrowing in the first place?

[Seguinite]

Originally Posted by Lowexpectations

Why are you escrowing in the first place?

I believe the lender can stipulate escrow as a condition....

[Lowexpectations]

Originally Posted by Seguinite

I believe the lender can stipulate escrow as a condition....

Sure but it's usually only due to a lack of equity.

[Seguinite]

I'm talking specifically about tax escrow... which I wouldn't think would have anything do with equity position. In two new purchases and one refi we weren't offered a choice. That said, we didn't ask. It may have been an option had we pursued it.

[SmartMoney]

Most lenders require 20% equity and the borrower to pay a 1/4% fee for someone to pay their own taxes and insurance.

[jdm2008]

Originally Posted by SmartMoney

Most lenders require 20% equity and the borrower to pay a 1/4% fee for someone to pay their own taxes and insurance.

One time or every year?

[SmartMoney]

One time fee, paid at closing.

So, if your loan is $400,000, the fee to pay your own escrows would be $1,000, paid at closing.

[Lowexpectations]

Originally Posted by SmartMoney

One time fee, paid at closing.

So, if your loan is $400,000, the fee to pay your own escrows would be $1,000, paid at closing.

I have never been charged to opt to pay my taxes on my own

[StrkAliteN]

Often on new construction the property tax is extremely low for the 1st cycle or 2 ( billed in 6 month increments here in the state of WA where I am )

I bought a new construction house in 1997 and the property tax was extremely low for around the 1st 9-12 months of the loan and then escrow caught wind that the original $ figure was basically for just the land value ( as the house had not been built yet )

I never had to pay back taxes but sure did get a big 70% increase when actual tax assed value ( land and dwelling ) was factored in correctly in the 2nd year

Death and taxes ... you know what they say

I feel for you OP, but you owe the money and I really doubt the lender was trying to pull a fast one on you.

Most likely something quite similar to my case ... was just caught sooner

Enjoy your new home

[StrkAliteN]

Originally Posted by Lowexpectations

I have never been charged to opt to pay my taxes on my own

This ^

I would think both unethical and possibly illegal for a lender to do this

I pay my own property tax and ins and was simple to set up with my mtg broker I used. My lender is Provident Funding