Ever wonder what happened to all that money you had in your mortgage escrow account when you sold or refinanced your home?
- It won’t reduce your mortgage payoff
- It won’t be given to you at closing
- It may cause problems…
Find out where it went in today’s video:
If you’re looking to sell your house faster, check out this article in the LIME Magazine. Great information from LHMG Vice President Linda Craft and others. Here’s a hint…listen to your Realtors! It helps! You Seriously need to check it out!
Today’s topic is “What happens to my escrow?”
If you are refinancing or selling your home and you have an escrow account for real estate taxes and homeowner’s insurance, then you need to know where your escrow goes in both types of transactions.
If you are selling your home you need to know that your escrow account does not reduce your payoff. Once your loan is satisfied at closing, your escrows will get processed and a separate check will get cut to you usually within a few weeks depending on your lender’s processing time. Don’t count on this money at closing.
If you are doing a refinance you need to know your escrow accounts do not transfer. You need to either re-escrow (escrowing the whole year over) and include it in your new loan or bring the cash to closing to cover it. The same thing will happen when your old mortgage is paid off. Your escrows will get processed and you will get a separate check in the mail. You can do whatever you want with this money. I would suggest a IRA or some type of bond, but a new hot tub sounds like more fun.
* FYI – There are a few exceptions to this rule but they are few and far between.
Mortgage Bonds are flat today. The bond market doesn’t seem to know what way to go based on mixed signals today from the slowing economy or inflation fears.
Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.
Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!
See you tomorrow!
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