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Old 06-16-2008, 04:52 PM
 
37 posts, read 212,518 times
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If you do have 20% down and don't escrow, do closing costs ever require any prepaid taxes, hazard insurance, etc? Or, are the closing costs just the lender's cost for doing business (appraisal, title, attorney, taxes, etc.)

Thank you!
Deanna
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Old 06-16-2008, 05:43 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,430 times
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you will pay 0.25% in discount points for the escrow waiver.
will also have prepaid interest.



Quote:
Originally Posted by weartoomanyhats View Post
If you do have 20% down and don't escrow, do closing costs ever require any prepaid taxes, hazard insurance, etc? Or, are the closing costs just the lender's cost for doing business (appraisal, title, attorney, taxes, etc.)

Thank you!
Deanna
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Old 06-17-2008, 09:14 AM
 
542 posts, read 1,573,542 times
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I did not escrow and I was still required to pay the first year hazard insurance at closing
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Old 06-17-2008, 09:20 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,430 times
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that's a little bit different, and varies by lender.

I'm not sure if the OP meant that they will be paying prepaid escrows.

Quote:
Originally Posted by vukinjo View Post
I did not escrow and I was still required to pay the first year hazard insurance at closing
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Old 06-17-2008, 02:33 PM
 
37 posts, read 212,518 times
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We will not have any escrow. We will have 20% down, and after your helpful post renriq, I asked about points to avoid escrow. We are doing a portfolio with a local bank and will not be charged extra for not escrowing . That's ONE good piece of news (the whole business is exhuasting). BTW, I've heard in the past that banks don't charge for not escrowing. Is that still the case with banks who sell on the mortgage market, or is that from the good ol' days of more portfolio lending by banks?

So it's a 20% down with no escrowing required. Do you think hazard insurance will be required to be prepaid?

I should be receiving the GFE soon, but I can't help but obsess about details. It's been such a rollercoaster ride till now, and knowing what to expect GREATLY helps me prepare. We are down to the wire.

Thank you!
Deanna

Last edited by weartoomanyhats; 06-17-2008 at 02:34 PM.. Reason: add data
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Old 06-17-2008, 02:36 PM
 
37 posts, read 212,518 times
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renriq: What's the difference between no escrow and paying prepaid escrow?
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Old 06-17-2008, 02:40 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,430 times
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it's very common for every lender to charge 0.25% to waive the escrow.
Some things do require that the whole year be paid upfront like hazard insurance.

If you forget to pay your taxes, the lender can structure a plan to have it paid. The foreclosure process for not paying your taxes can be quite long.

If you forget to pay your hazard ins, the lender maybe notified at the wrong time. If you're not insured, and the house burns down, then the lender can't do anything.

Banks used to waive escrow if you did the combo loan 80/10/10 or 80/20 or 80/15/5. They would still charge the 0.25% to waive the escrow.

Quote:
Originally Posted by weartoomanyhats View Post
We will not have any escrow. We will have 20% down, and after your helpful post renriq, I asked about points to avoid escrow. We are doing a portfolio with a local bank and will not be charged extra for not escrowing . That's ONE good piece of news (the whole business is exhuasting). BTW, I've heard in the past that banks don't charge for not escrowing. Is that still the case with banks who sell on the mortgage market, or is that from the good ol' days of more portfolio lending by banks?

So it's a 20% down with no escrowing required. Do you think hazard insurance will be required to be prepaid?

I should be receiving the GFE soon, but I can't help but obsess about details. It's been such a rollercoaster ride till now, and knowing what to expect GREATLY helps me prepare. We are down to the wire.

Thank you!
Deanna
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Old 06-17-2008, 03:30 PM
 
4,961 posts, read 12,544,186 times
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Quote:
Originally Posted by weartoomanyhats View Post
We will not have any escrow. We will have 20% down, and after your helpful post renriq, I asked about points to avoid escrow. We are doing a portfolio with a local bank and will not be charged extra for not escrowing . That's ONE good piece of news (the whole business is exhuasting). BTW, I've heard in the past that banks don't charge for not escrowing. Is that still the case with banks who sell on the mortgage market, or is that from the good ol' days of more portfolio lending by banks?

So it's a 20% down with no escrowing required. Do you think hazard insurance will be required to be prepaid?

I should be receiving the GFE soon, but I can't help but obsess about details. It's been such a rollercoaster ride till now, and knowing what to expect GREATLY helps me prepare. We are down to the wire.

Thank you!
Deanna
A portfolio loan will not charge the 0.25% for not escrowing. That is a secondary (fannie/freddie) fee.

Proof of hazard insurance will be required, but you will not have to pay a full years' worth. You can pay monthly or whatever your agent offers, you just need proof that the home is covered. Myself I would pay the whole year as you will get a discount and you don't want to accidentally miss a payment and risk it lapsing.
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Old 06-17-2008, 03:36 PM
 
37 posts, read 212,518 times
Reputation: 23
Thank you very much for your replies. We agree with you about insurance payment and generally pay all insurance for the full year (or 6 months with car). I must say, as I go through this process, portfolio loans look nicer and nicer and nicer. Is it me or do they seem simpler?!

Thank you again. Here's hoping for a close.
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Old 06-17-2008, 03:40 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,615,430 times
Reputation: 1008
this is what happened with Angelo Mozilo and US Senator Chris Dodd.

When the bank likes you, then you're going to go through a lot easier.

Quote:
Originally Posted by weartoomanyhats View Post
Thank you very much for your replies. We agree with you about insurance payment and generally pay all insurance for the full year (or 6 months with car). I must say, as I go through this process, portfolio loans look nicer and nicer and nicer. Is it me or do they seem simpler?!

Thank you again. Here's hoping for a close.
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