my mortgage escrow balance has been rolled into my settlement statement as part of my loan is this correct ?

Answer 1

I assume you are talking about the escrow account being set up for your new loan. Yes, unless your new loan is with the same lender where they may be able to simply transfer the escrow balance from one loan to another this is pretty common.

When you current lender is paid in full they will mail you a check for any remaining escrow balance on their loan. you could always then send it to your current lender to be applied as a principal reduction payment so you're not paying interest on the higher loan amount.

Answer 2

If it's your escrow balance,(the balance of your existing taxes and insurance from your current loan), this is not correct. If it is a new escrow account set up, then this is how it should be.

When refinancing, the new lender creates a new escrow account for you, since they had nothing to do with the old transaction. Most times, even if you are refinancing with your existing lender, they will create a new escrow account for you.

In both cases, once the new escrow account is set up and your loan funds, you will be reimbursed for whatever is left in your old escrow account. Hope this helps.

Answer 3

you have definitely no case in besides. The escrow impounds are estimates in basic terms. there's no way that the lender can are anticipating what the precise components tax bill would be so they estimate based upon what the final bill became into. as quickly as a three hundred and sixty 5 days your escrow account is reviewed and your fee adjusted up or down as necessary to cover any shortfall or overage interior the escrow account. you may the two wait for that reassessment of the escrow account or, because you be conscious of ways plenty you will probable be short, regulate your fee now to cover the lack. in case you wait for the each year evaluate your month-to-month funds will upward thrust by using approximately $a hundred, $50 to cover the $six hundred scarcity and yet another $50 to cover the extra effective components taxes interior here 3 hundred and sixty 5 days. all of us with a private loan with impounds studies this. you haven't any longer have been given any recourse as you have suffered no financial loss. you're no longer entitled to any repayment. and albeit in case you ask for it you would be the place of work guffawing inventory for a whilst. lenders are authorized a 2 month cushion interior the escrow account as a hedge against arising short. Your account will arise substantially shorter than that so which you're certainly past to the pastime on that score. lenders do no longer pay pastime in impounds in maximum states, nor can they value pastime whilst the account pulls up short.

Answer 4

I see no reason why it should not be rolled in. Assuming you are paying off this mortgage with another, or have sold the house, you will be receiving the money. Is there some reason you wanted to receive it as a separate check ?