Removing escrow from mortgage

[Steel Shank 9536]

55 minutes ago, Okie State said:

The fuck are you talking about time? Takes five minutes to make the payment and in the meantime I get to have control over a decent chunk of cash. I don't want to trust anyone else with my money if I don't have to. Has nothing to do with saving $100.

this

[NeverMarryAStripper 22247]

What actual control do you have over the cash? You have to have it to pay the taxes and insurance so it’s not like you’re going to be investing it in equities, options, and commodities. Congratulations on being able to choose which bank is going to be paying you your 1% interest on your savings account.

[tokamak 6686]

For me, I did not trust the mortgage company to get the math right year after year for 30 years. The way mine did it at least was confusing as hell. Constantly catching up or getting ahead, and I hated not having a good handle on how much I'd be paying or if my money was going toward this year, next year, last year, or whatever. Maybe I'm paranoid and other people just trust the company to get it right, but dropping escrow saved me time because I didn't have to sit down and spend an hour working through all their math once a year.

It also makes it a lot easier to shop around from year to year for insurance. I didn't like having to get my mortgage company involved in that decision.

[Okie State 3888]

It doesn't really make a shit. It's my money and I prefer it in my account. It's fine if you don't.

[Okie State 3888]

For me, I did not trust the mortgage company to get the math right year after year for 30 years. The way mine did it at least was confusing as hell. Constantly catching up or getting ahead, and I hated not having a good handle on how much I'd be paying or if my money was going toward this year, next year, last year, or whatever. Maybe I'm paranoid and other people just trust the company to get it right, but dropping escrow saved me time because I didn't have to sit down and spend an hour working through all their math once a year.

It also makes it a lot easier to shop around from year to year for insurance. I didn't like having to get my mortgage company involved in that decision.

Also all of this. No transparency into why the monthly payment changes each year.

[Okie State 3888]

One other example I forgot about with the new tax law changes, is timing my property tax payments to maximize itemized deductions in any one year. Doesn't really apply under the current tax reform, but did in the past and likely will again in the future. No control over that if it's paid through escrow.

[Spur08 384]

4 hours ago, tokamak said:

It also makes it a lot easier to shop around from year to year for insurance. I didn't like having to get my mortgage company involved in that decision.

This makes absolutely no sense to me.  I shop insurance companies every year.  I've never had to deal w/ my mortgage company once while switching.  My agent simply sends them the new provider year over year.

 

I just closed today on a refi, but read this thread too late.  When I asked to opt out of escrow this past week, I was told it was too late and they would have to redo paperwork with my rate lock expiring before then.  It's almost certain that the lender is going to sell my mortgage before the June 1st payment.  When they sell, is that my opportunity to opt out of escrow?

Edited April 27, 2019 by Spur08

[Gil Bang 26188]

nope

[Quagmire 2148]

 

Are y’all talking about escrow for taxes and insurance, or are you talking about PMI? Because this sounds like you’re talking about PMI.

Escrow / taxes - only reason I mentioned 80 % is because my lender requires you be out of PMI to take away escrow. Figured most did as well

[Quagmire 2148]

What actual control do you have over the cash? You have to have it to pay the taxes and insurance so it’s not like you’re going to be investing it in equities, options, and commodities. Congratulations on being able to choose which bank is going to be paying you your 1% interest on your savings account.

It’s easy to get 2% , congrats on giving your lender free money to invest for paying 2 bills a year .

No it’s not much but fuck em they shouldn’t get to keep that money

[TwiceHorn 32006]

On 4/25/2019 at 11:59 AM, Rimbo said:

All clear. Thanks!

Escrow is a general legal term for when one party holds money for the benefit of another.  In Texas and a lot of places, there is an "escrow" set up during the contracting/purchase phase, usually at the title company in Texas, where the earnest money is held until closing or breach or some other condition.

Then, during the mortgage phase, the mortgage company/servicer holds monthly payments toward property taxes in escrow pending the annual payment to the tax authority.

Two different escrows.

[Rimbo 26866]

5 hours ago, TwiceHorn said:

Escrow is a general legal term for when one party holds money for the benefit of another.  In Texas and a lot of places, there is an "escrow" set up during the contracting/purchase phase, usually at the title company in Texas, where the earnest money is held until closing or breach or some other condition.

Then, during the mortgage phase, the mortgage company/servicer holds monthly payments toward property taxes in escrow pending the annual payment to the tax authority.

Two different escrows.

Yeah, I got that, now. I was reading this as meaning the second escrow was an extension of the first. And I've never had the second kind, although I've seen it as an option both times -- an option I've never had to take.

[MNLonghornFUKM 8964]

What actual control do you have over the cash? You have to have it to pay the taxes and insurance so it’s not like you’re going to be investing it in equities, options, and commodities. Congratulations on being able to choose which bank is going to be paying you your 1% interest on your savings account.

Because instead of putting it into an account I cant touch..I can dip into it if I need 1000 here and there for like blinds or garage heater.


Just need to be tentative and put it back in your savings by may and October

[Okie State 3888]

Because instead of putting it into an account I cant touch..I can dip into it if I need 1000 here and there for like blinds or garage heater.


Just need to be tentative and put it back in your savings by may and October

Surly obligatory 'you sound poor.'

[UTPhil2006 3915]

On 4/29/2019 at 7:24 AM, TwiceHorn said:

Escrow is a general legal term for when one party holds money for the benefit of another.  In Texas and a lot of places, there is an "escrow" set up during the contracting/purchase phase, usually at the title company in Texas, where the earnest money is held until closing or breach or some other condition.

Then, during the mortgage phase, the mortgage company/servicer holds monthly payments toward property taxes in escrow pending the annual payment to the tax authority.

Two different escrows.

Correct.  The title company holds earnest money during the contract phase of the home until closing.  Usually 1% of sales price is pretty standard for earnest.

The mortgage company on a purchase, to set up escrow usually requires 2 months of taxes and insurance to set up your escrow.  Or you can waive it up front.  On refinances its 2 months + the month you're expected to close up front  (so 8 (August) + 2 = 10 currently) but then you get an escrow refund check back within about 30 days.

[dcbc 14643]

If you pay off your mortgage, you get out of escrow without lifting a finger.

/recently available humblebrag

Edited August 4, 2019 by dcbc

[NeverMarryAStripper 22247]

How did you pay off your mortgage without lifting a finger?

 

[dcbc 14643]

4 hours ago, NeverMarryAStripper said:

How did you pay off your mortgage without lifting a finger?

 

Paid online.

[NeverMarryAStripper 22247]

I bet you still lifted a finger