I am refinancing and my loan officer says that I have to pay $2000 for using escrow. Is there a way around it? I thought that escrow was unnecessary when refinancing. Isn't it needed only when purchasing or selling real estate property?
2006-09-29 20:03:51 · 6 answers · asked by Tatyanna N 1 in Business & Finance ➔ Renting & Real Estate
Yes, you have to go through the escrow process. New trust deeds need to be drawn up and the old ones paid off and released. Other paperwork needs to be taken care of as well -- disclosures, appraisals, title insurance, surveys, etc. and these normally require the services of an escrow agent or attorney. You do NOT have to use the lender's preferred escrow company, however. Shop around and tell the loan officer which agent will be doing the loan closing.
Don't confuse that with the impound account with the mortgage servicing company, sometimes referred to as escrow in some parts of the country. Two totally different issues. Not all lenders require impound accounts, especially if the borrower has a long and strong credit history. I was able to dispense with the impound account when I refinanced 3 years ago but still had to close the loan through an escrow company.
2006-09-29 20:11:05 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I'm no expert but it's my understanding that escrow is the account that the lender draws from when they pay the tax bill and the home insurance bill. If you don't put money in an escrow account then you'd better be prepared to pay these bills yourself because, if you don't, you will surely lose your house.
2006-09-29 20:09:21 · answer #2 · answered by Ellen J 7 · 0⤊ 1⤋
The escrow stability *ought to* get transferred over to whoever the recent lender is. Your personal loan words (cost, charge, time period, and so on) ought to no longer change. in the experience that your escrow stability would not move or if something on your own loan ameliorations, call and boost he**!!! Escrow expenditures are not to any extent further something yet a piggy monetary company holding your money till your position taxes and coverage rates are due (of route, there is no easily "piggy monetary company"--the loan company makes use of that money for his or her own applications and then only will pay the invoice at the same time as it comes...yup, you're allowing them to borrow your money pastime loose) shop an eye fixed on the mail for an assertion of who you need to be making your loan funds to. it will say something alongside the lines of "understand servicing change." be careful, in case you flow over 30 days late as a results of lack of verbal change, your credit status received't care and also you'll knock factors off. So make certain you're on good of it and getting the charge to the right position.
2016-11-25 03:35:36 · answer #3 · answered by Erika 3 · 0⤊ 0⤋
sure do. they are the uninterested party handling the money fairly. and they also insure the lender against any ownership law suits. let say you had a cousin who is actually on title, but due to an error he was left off. Now the insurance would protect the bank. Doesnt really help you, but you have to pay for it. 2000 sounds like very fair pricing too
any other fees? they may be too much or just extra
2006-09-29 20:29:05 · answer #4 · answered by cjkloanguy@yahoo.com 2 · 0⤊ 0⤋
I'm so tired! I read "scarecrow" instead of "escrow" at first and started laughing. Now that I know it's escrow, it's not quite as funny.
2006-09-29 20:15:03 · answer #5 · answered by Pumpkin Head 4 · 0⤊ 0⤋
I don't know what to say
2016-08-08 16:10:03 · answer #6 · answered by ? 3 · 0⤊ 0⤋