Rates are flat today. Today’s rates with no lender fees are 3.5% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)
Is it better to escrow your taxes and insurance into your mortgage payment OR pay them on your own?
Check it out in today’s video:
For some of you this is simply a personal preference but lets take a look at when you can and can not waive your escrows.
Well if you are looking at a FHA, USDA or VA loan you don’t have a choice. You are escrowing your taxes and insurance no matter what. It’s in the guidelines so don’t try to negotiate them out. It’s not going to happen.
However if you are looking at a conventional mortgage you will have the option as long as you have at least 20% equity in your home. Not 19% or even 19.5% only 20% or more will give you this option.
So let’s say you are one of the few that does have this option. What is the better way to go? Well it’s easy. Escrow!
If you chose not to escrow, you will be paying for it in a slightly higher rate or a fee. The standard fee for NOT escrowing is 25bps of your loan amount. So on a $250,000 mortgage it would cost you $625 to chose this option.
Is it really worth the extra fee to not do something your have to do anyway? I mean, you plan on paying your taxes and home owners insurance right? So my opinion is to escrow them bad boys and take the better deal.
That’s my mortgage saving tip for today. And today is Follow Friday. Check out these three crazy twitter fanatics and show them some twitter love.
Peter Winick – Deep expertise in helping those with deep expertise. Rob Mildish – Mortgage professional Joanna MacKenzie – Mortgage by day, Red Cross Disaster Action Team lead and Public Affairs volunteer by night
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.
Share Today's Video! Today's rates with no lender fees are 3.375% APR on a 30 year, 3.250% APR on a 20 year and 2.750% APR on a 15 year. (click here for details) If you've just sold or refinanced and think you can b...
Share Today's Video! Rates are down today. Today's rates with no lender fees are 3.375% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details) Today I want to talk about the b...
Share Today's Video! Rates are down today. Today's rates with no lender fees are 3.375% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details) Well, if you are a regular viewe...