Escrow

[Breezy]

Anyone know if you can have your escrow account removed from your loan? I am so irritated with the bank raising the payment just to turn around and send me a check every year. I would rather just pay the mortgage and Insurance my self and be done with it. That way noone is sitting with MY money in their account.
So is it easy to do if it can be done or not.
TIA

[kenw]

yes, you can handle your own escrow. We have done it on several previous loans. We got tired of the bank not taking advantage of early-payment discounts so we set it up to do it ourselves. Talk to the mortgage holder. We did ours during one of our re-finances, I'm not sure how to do it without a re-fi.

[andyz]

The lender has the option to stop that escrow requirement, but if it is in your contract it is their option, not yours. You are free to request it.

By law, they can't keep more than a 1/6 cushion in there and they are required to take advantage of early payment discounts. If they abuse these, consider calling them on it and/or going to their regulator so they "learn" how to do it right.

Payment fluctuations are normal, but shouldn't be extreme after the first year unless your taxes or insurance costs fluctuate. The last possibility is they screwed up on the math. It isn't hard, but it is easy to mess up on the calculations.

[toverman]

In our experience, you've got to reach a certain percentage of equity vs. the value of the home before you can drop the escrow requirement (as well as dropping the PMI mortgage insurance). We qualify to drop escrow but haven't because we temporarily had the opposite problem ... the bank wasn't collecting enough in light of our tax rate/value going up.

If you can, and feel disciplined enough to put the tax money aside each month, go for it! For us, it's nice to get our property tax statement in the mail and know we've got the money without haven't to think much about it. Sure, the mortgage checks are bigger each month, but we're budgeted for that.

[David_3]

Originally Posted by Breezy

I am so irritated with the bank raising the payment just to turn around and send me a check every year.

Ain't it the truth! I haven't had an escrow account in years, for the same reason. I do a much better job of managing my money than they do. As others have said, you can always request it. Explain that you plan to handle the money in a professional manor. I opened a separate savings account exclusively for that reason. Each month, I simply transfer a set amount of money from my checking account into the savings account. It's easy, and saves me a lot of aggravation.

Good luck.

[carrbowl]

Breezy, I don't know as much as I would like, but we have never had any issues doing our own escrow. But, we have a great credit record, and I would think that would be the biggest factor (just guessing...). When we bought this house 8 years ago, we took out the second loan (20%) and the PMI, and were still able to do the escrow ourselves...of course we also knew that within 2 years we would pay the 20% off without a problem. I do have a very good friend that is a current loan officer...if you want her phone number pm me. I know she would give you as much info as she could..and I trust her totally....

[Breezy]

Thanks guys.
I know that we could handle it as I have handled everything else. I am only looking at this option if the house doesn't sell. I do not want to be stuck here for a year or so and dh be else where. Yeah he won't be where we are going either but I will be in housing and not have the headache of here.

And I have turned down so many jobs here because we aren't supposed to be here that it isn't even funny. The last house we didn't have the issues of selling like we do here and this house is WAY nicer than our other one.

So with that said I am looking at this if we have to keep the house and can rent it out. I just want as many options open as possible.

Oh and as for the payments going up, they have gone up outrageously every year so far, just to turn around and get a check for almost the exact amount. And the wierd thing is that it went up the most this this year, our insurance dropped and the taxes dropped a pretty good bit.
It is just crazy

[Buddha]

If your loan has an escrow requirement in it, you have to go with that and so does your lender.
However, you can figure out what your payment should be the same way the bank does. If you disagree with the bank, argue with them about it. Excuse me, make an appointment and talk to them about it in a calm and rational manner. If they can't back up what they show on the escrow analysis that they have sent you, they have to lower the payment to the amount that covers the taxes and insurance. By law, they are not allowed to collect anything extra. Doing so and refunding you the overage yearly may keep you quiet, but they can't keep payments received or keep the amount too high once they have been advised you are aware and want it reduced or refunded.
I guess you just got your escrow analysis and it shows your payments going up. There should be a ph# on it to call if you have questions about it. Look at their analysis, then do your own. If they don't agree, call and ask for an explanation.
When you talk to the bank, you should know what you need to pay as well as or better than the bank, and when each bill is due, so you can talk to the bank in a calm tone and not get frustrated and loud when it doesn't go your way or you don't understand it. Then let them prove their case while you agree or disagree with it or not. That is what they have to do, not decide whether they like your ideas better. Remember that. It's usually a pretty easy thing to understand, not rocket science.

[Breezy]

Thanks Joe you helped me before. And I appreciate it.
I just am irritated and not sure I could go in there and be rational with the way things are going lately lol. But I will try.
I will take last years statement from them and go from there.
I appreciate everything.
If we decide to rent which i am HIGHLY leaning this way as I am not sure I will last long here as I may get locked up if I am left here long lol. But if we do rent I may just leave it the way it is.

[PhotoByLeal]

Originally Posted by Breezy

Anyone know if you can have your escrow account removed from your loan? I am so irritated with the bank raising the payment just to turn around and send me a check every year. I would rather just pay the mortgage and Insurance my self and be done with it. That way noone is sitting with MY money in their account.
So is it easy to do if it can be done or not.
TIA

U have to call your loan company or Leander..
When I bought my first house, I had my escrow waived and I paid the insurance and taxes at the end of the year. I got my loan on a 30 year conventional loan, but I made sure that there were no penalties if I paid the loan off early. I paid off the house in 11 years.
Before u take a jump,
please make sure U check with your Loan Company or Lender…..

Later,
LeaL

[Breezy]

Actually Joe we didnt' get the one stating it was going up, thank god.
But we did get the check in the mail.

[Breezy]

Originally Posted by PhotoByLeal

U have to call your loan company or Leander..
When I bought my first house, I had my escrow waived and I paid the insurance and taxes at the end of the year. I got my loan on a 30 year conventional loan, but I made sure that there were no penalties if I paid the loan off early. I paid off the house in 11 years.
Before u take a jump,
please make sure U check with your Loan Company or Lender…..

Later,
LeaL

Thank LeaL this is our 2nd house and we didn't have these issues with our first house lol.
We are just tired of paying them more and more and then getting it back. Thats all.

[Buddha]

It's pretty common for some lenders to overstate required payments. They all seem to know the law though, when questioned on it.
Breezy, figure out the payments yourself, then let your husband call the bank. If you have to, find a loan officer and offer to buy him lunch or dinner in return for figuring out what your payments should be if that is what it takes. It's a little complicated to do it by email or forum posts.

[Breezy]

Oh I think I came up with the total not to complicated after dealing with all of this bs for the past 3 years lol.
But I can't rely on dh doing anything at this moment. He is too concerned about the command and isn't even handleing HIS issues. I could seriously scream right now lol.
They have jacked up his pay AGAIN. Not sure how that happens on shore duty but they did it again.
And he checks out in less than a week and hasn't been in to get it resolved so yeah I am not relying on him to actually go to the bank lol.
I appreciate all of your help though :D
You explained things to me last time that were just not being said by others.
Thanks again

[picman]

Our lender charged us a fraction of a point to get us off escrow. I think it was about $125. Worth every penny to be in control..
BTW - PMI is now deductible. However, the sooner you can dump it, the better.