Quote:
Originally Posted by Battndi3
How are escrows figured on a refinance in Texas. I’m closing in September and the mtg co is collecting 12 months taxes and 9 months insurance
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The full year is due in October. So when you close, they are required to collect a sufficient amount AT closing such that the Escrow Account holds enough $$ to pay them when they are due.
So timing is a little tough.
If you were to close your refinance in November (or work with your current mortgage servicer to find out WHEN they plan to pay the tax bill, and get proof) the new lender would only collect 2 months because your monthly payments would add 1/12th of the tax bill, every month, so that next year they can be paid from the escrow account.
But, about a month after you close you will receive a check from your current loan servicer in the amount of Escrow (impound) funds they have collected from you, and had not yet paid when that loan was paid off via this refinance.
In fact you might call your current servicer and ask when they plan to pay your property taxes.
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