Posted: 4/15/2013 2:29:04 PM EDT
| Is it a standard or required practice that any amount in your current escrow account be applied to your current mortgage payoff instead of being transferred to your new refi loan? |
| What WF is wanting to do is apply our current escrow amount to the current loan balance. We have to establish a new escrow account for the refi loan and either bring the required amount for said new escrow account to the closing, or finance the amount needed in the new loan. |
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What WF is wanting to do is apply our current escrow amount to the current loan balance. We have to establish a new escrow account for the refi loan and either bring the required amount for said new escrow account to the closing, or finance the amount needed in the new loan. Keep the money in the new escrow acct. Tax's and insurance always go up. |
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What WF is wanting to do is apply our current escrow amount to the current loan balance. We have to establish a new escrow account for the refi loan and either bring the required amount for said new escrow account to the closing, or finance the amount needed in the new loan. Typically when you refi you must start a new escrow account and you are refunded the balance of your current escrow account. If the bank is suggesting your current escrow balance be used to reduce your mortgage principal balance, that could be a good thing. Just make sure they're not adding any junk fees and using your escrow to pay for them. |
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You mean your impound account, I presume. Let it go. Pay your taxes and insurance manually. +1. Been doing it for the last 13 years. Separate account just for that. While it is currently low, I earn some interest and don't have to count on some else to pay my bill. |
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Basically it seems it will be a six of one,... thing. If we want a refund check for our current escrow, our new mortgage finance amount will be an equivalent amount higher.
We have a 6.25% mortgage now and are trying to lower the interest not only to save over the life of the loan, but to lower our payment now due to job/income issues from both of us being laid off from our previous jobs on the same day 3 years back. We both work 2-3 jobs each now to make ends meet. |
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I got a check refunding what was held in escrow. I was told I could do whatever I wanted with it. Who was your lender? Mine is Wells Fargo who is doing the refi. Wells Fargo refinanced me, going from Metlife, and Metlife sent me a check for the escrow balance a few weeks after the payoff. |
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It is not standard practice to reduce the mortgage payoff by the escrow balance. But it is mandated that they must refund all escrow funds and any overage paid within 30 days of receipt. Some lenders will not reduce payoff others you have to request them to do so.
The Above is from a VP of a very large title company |
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Basically it seems it will be a six of one,... thing. If we want a refund check for our current escrow, our new mortgage finance amount will be an equivalent amount higher. We have a 6.25% mortgage now and are trying to lower the interest not only to save over the life of the loan, but to lower our payment now due to job/income issues from both of us being laid off from our previous jobs on the same day 3 years back. We both work 2-3 jobs each now to make ends meet. 6.25  are you getting it to 3 or 4 percent range? Not that is any of my business. Is it a 15 year or 30 year.?
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