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Personal Finances / Buying or Selling a Home


Subject:  Re: Escrow items during refi Date:  1/25/2013  3:22 PM
Author:  crackdclaw Number:  124597 of 128123

Hey WotPeed,

Agree with Dave, your Loan Officer is really poor at communicating. Or lazy. Here's some info that may help.

There's a total of about $3100 being added to the principal of the loan. $1577 of that is an item labeled "Property taxes due to county". That amount sounds like the right number for my semi-annual tax bill. Why is that being added to the principal? Shouldn't that either come out of the existing escrow account or out of my pocket at closing?

Taxes must be due soon, or there would not be a seperate line item for taxes due county. If taxes were not due soon, the money would be collected in the new escrow account being established. Title companies are not able to record a new mortgage at the court house if R.E. taxes are due. In this case it looks as if the title company established a line item to show they are collecting taxes and they (not the bank) will be making the next tax payment to the county.

Further down the statement there's a section called "Reserves Deposited with Lender"