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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127465  
Subject: Escrow items during refi Date: 1/25/2013 11:15 AM
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Greetings,

I'm scheduled to sign the papers for my streamlined refi with Chase this afternoon and I just got the final statement of the closing costs. Most of them seem reasonable, but I don't understand some of the items related to property taxes and the escrow account.

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?

Further down the statement there's a section called "Reserves Deposited with Lender". One of the items there is 4 months of homeowner's insurance. Then there's another item for $525 for 2 months of property taxes, and a credit of $141 for "Aggregate Adjustment". Those three items combine to be $667, which is also being added to the loan principal. These just sound like more escrow payments, why are they being added to the principal? And why more tax payments? Weren't those covered in the $1577 above?

The only other significant fee is $740 for "Title services and lender's title insurance", $425 of which is for a new title insurance policy. I don't see why I need a new title insurance policy but I'm not going to argue over a few hundred bucks.

So my main questions are: shouldn't the existing escrow account cover the property taxes and HO insurance, and if not, why are those items being added to the principal?

I guess I should be getting a check for the balance of whatever is in the existing escrow account, but it seems like that should be used to cover the new escrow items rather than increasing the loan amount. What am I missing?

Thanks,

Wot
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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124589 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 11:23 AM
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I don't see why I need a new title insurance policy
Because the loan that the old insurance policy insured will be gone.
The new policy will insure the new loan. And pays for them to do a new title search, since the title company have to make sure that you don't have some new lien against the property that was put there between when your old title search was done and now.

You can check if your current title insurance has a cheaper insurance available for refi's since they already are insuring the current loan. Sometimes they do.

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124591 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 11:47 AM
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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?

What guidance did you give about closing costs? If it was "roll them into the loan," that anwers the question as to why they're being rolled into the loan. As far as the existing escrow account is concerned, I don't remember exactly the reasoning, but I do recall that it was much simpler to deal with the new closing as if there was no existing escrow account. A full refund of everything in the old escrow account followed.

Have you tried calling the loan officer to discuss paying the escrow charges rather than rolling them into the loan? It shouldn't be difficult.

Phil
Rule Your Retirement Home Fool

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124592 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 11:57 AM
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Because the loan that the old insurance policy insured will be gone.
The new policy will insure the new loan. And pays for them to do a new title search, since the title company have to make sure that you don't have some new lien against the property that was put there between when your old title search was done and now.


I can see paying for the new title search. I guess I assumed the title insurance policy could "transfer" from one loan to another since nothing has changed regarding the property, owners, etc. Oh well.

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124593 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 12:17 PM
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What guidance did you give about closing costs? If it was "roll them into the loan," that anwers the question as to why they're being rolled into the loan.

I don't recall giving any guidance but perhaps I did. If I was asked, I wouldn't have thought of property takes and HO insurance as part of the closing costs.

How are my taxes and insurance being paid if those payments are being added to the loan balance rather than the escrow account? Does the lender put them back into the escrow account for me?

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124594 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 12:27 PM
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I just got an email reply from my loan officer:

I will explain it [lines] 1002, 1004 and 1320 are paid at the time of the closing because the taxes and HOI requires to have resolved before completing the rate re-finance. If you look a 206 you receive a credit (amount that’s already n your escrow) for prior loan. So Chase has to reestablish your escrow account. Also, when you see your new statement it should reflect the breakdown of escrow and principle.

I still don't see how the numbers add up. There's about $2100 being added to the loan balance to cover property taxes and HOI (line items 1002, 1004, and 1320). I now see that I'm receiving a credit for $915, which is supposed to be what's in my existing escrow account. Where does that extra $1185 go?

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124595 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 2:28 PM
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Hi Wot,

I will explain it [lines] 1002, 1004 and 1320 are paid at the time of the closing because the taxes and HOI requires to have resolved before completing the rate re-finance. If you look a 206 you receive a credit (amount that’s already n your escrow) for prior loan. So Chase has to reestablish your escrow account. Also, when you see your new statement it should reflect the breakdown of escrow and principle.
I still don't see how the numbers add up.

Me neither... sounds like your loan officer is confused, or really poor at communication, or both.

The new lender is not giving you a credit relating to your old escrow account. They may be applying a credit from a rebate due to a premium interest rate (the most likely source,) or due to prepaid per diem interest charges you are making for closing mid-month (although that would be an accounting fallacy as the actual credit would come from the prior lender refuding the partial period you had prepaid on your previous monthly mortgage payment.)

After about 3-4 weeks after you close & fund, the prior servicing company will send you a check reflecting the remaining balance of your old escrow account.

Cheers,
Dave Donhoff
Leverage Planner

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124596 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 2:59 PM
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I wonder if you might be confused about what is on the statements you're reading.

To see if anything is being added to your loan, you only need to look at two numbers. The payoff amount of the old loan, and the amount of the new loan.

You'll need to inquire about what is included in that payoff amount. It certainly includes the outstanding loan balance. It may also include a partial month's interest and various payoff fees. You want to keep those in mind when comparing the payoff to the new loan.

Just because something is listed on the settlement statement does not mean it it being added to the new loan.

--Peter

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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124597 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 3:22 PM
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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". One of the items there is 4 months of homeowner's insurance. Then there's another item for $525 for 2 months of property taxes, and a credit of $141 for "Aggregate Adjustment". Those three items combine to be $667, which is also being added to the loan principal.

First, know that they are establishing a new escrow account. We can talk a bit further down about what is happening with the money currently being held in escrow for taxes and insurance.

Four months of homeowner's insurance would have me guessing that your homeowner's insurance was renewed in the last 2 or 3 months. If it was due in April, they would have been collecting about 12 months of insurance. Two months of R.E. taxes being collected, this is because the title insurance company is going to pay what's due now.
Aggregate Adjustment is Federal Regulations. The bank wants to hold more money in escrow than the government allows, the adjustment is reducing what the bank would prefer holding.

These just sound like more escrow payments, why are they being added to the principal?

This is a different question, the Loan Officer was probably working under the assumption that you didn't want to bring money to closing. In that case he made the new loan large enough to cover all closing costs and prepaids. Escrow money is pre-paying for taxes and insurance that will be due in the future. Perhaps the Loan Officer didn't communicate well, or, was lazy.

And why more tax payments? Weren't those covered in the $1577 above?

The $1,577. covered what's due now. If you pay twice yearly, they will be due again in 6 months. The escrow account will need to collect 2 months of taxes at closing as you will probably only have 5 monthly mortgage payments before taxes are due again.

The only other significant fee is $740 for "Title services and lender's title insurance", $425 of which is for a new title insurance policy. I don't see why I need a new title insurance policy but I'm not going to argue over a few hundred bucks.

Go ahead and argue. I wouldn't call it that, I would call it taking 5 minutes to make a $100 or so. You should see if they can re-issue the orginal title insurance policy. You may not need a new policy, but just a reissued one.

I guess I should be getting a check for the balance of whatever is in the existing escrow account, but it seems like that should be used to cover the new escrow items rather than increasing the loan amount. What am I missing?,

What I'm missing is who was the past loan with? I think previously you posted that it was with PNC. If that's the case, when PNC gets paid off they will refund the escrow they are holding. If Chase had the original loan, ask them what they are doing with current escrow. The bank I'm with will apply the escrows of the current loan to the balance of that loan, reducing the payoff amount.

Email the loan officer and tell him to give you a call. If he doesn't call, email him and say you will cancel the transaction if you don't have your questions answered.

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124601 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 4:52 PM
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Me neither... sounds like your loan officer is confused, or really poor at communication, or both.

Both, I think. She's been really bad at answering the few questions I've had.

The new lender is not giving you a credit relating to your old escrow account. They may be applying a credit from a rebate due to a premium interest rate (the most likely source,) or due to prepaid per diem interest charges you are making for closing mid-month (although that would be an accounting fallacy as the actual credit would come from the prior lender refuding the partial period you had prepaid on your previous monthly mortgage payment.)

This would make more sense. The line item that my loan officer said was from my existing escrow account balance is actually labeled "Lender Credit towards Closing Costs". That didn't sound like the balance of my escrow account to me.

After about 3-4 weeks after you close & fund, the prior servicing company will send you a check reflecting the remaining balance of your old escrow account.

Is the closing agent who's coming to sign the documents going to know the answer to this? Will they know what the current escrow account balance is?

Thanks,

Wot

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124602 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 4:55 PM
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I wonder if you might be confused about what is on the statements you're reading.

Entirely possible.

To see if anything is being added to your loan, you only need to look at two numbers. The payoff amount of the old loan, and the amount of the new loan.

Chase Payoff – loan number xxxxxxxx: 187,951.89
Principal amount of new loan: 190,148.00

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124603 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:03 PM
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Hi crackd,

Thanks for the detailed reply.

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.

Sounds ok so far.

The $1,577. covered what's due now. If you pay twice yearly, they will be due again in 6 months. The escrow account will need to collect 2 months of taxes at closing as you will probably only have 5 monthly mortgage payments before taxes are due again.

So that would imply that the existing escrow account should have enough to cover the $1577 that's due soon, right? So I should get a check for at least that amount some time after the closing?

If Chase had the original loan, ask them what they are doing with current escrow. The bank I'm with will apply the escrows of the current loan to the balance of that loan, reducing the payoff amount.

The current loan is with Chase as well (PNC has my HELOC). I'll ask the closing agent about the existing escrow account.

Email the loan officer and tell him to give you a call. If he doesn't call, email him and say you will cancel the transaction if you don't have your questions answered.

I've emailed and called my loan officer. She is of very little help. Her communication skills are poor and I don't think she knows what she's talking about. She has ignored questions completely and (from the responses in this thread) it sounds like some of her answers are just plain wrong.

If the closing agent can't explain things to me better then I might just postpone signing the documents.

Thanks again to all who have helped.

Wot

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124604 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:04 PM
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WotPeed:

<<<Because the loan that the old insurance policy insured will be gone.
The new policy will insure the new loan. And pays for them to do a new title search, since the title company have to make sure that you don't have some new lien against the property that was put there between when your old title search was done and now.>>>


"I can see paying for the new title search. I guess I assumed the title insurance policy could "transfer" from one loan to another since nothing has changed regarding the property, owners, etc. Oh well."

Title policies are as of a certain date (unless downdated by endorsement), and insure a particular person or persons, and in the case of loans, insure a particular mortgage or deed of trust.

If you new lender were taking an assignment of the existing note and lien and then modifying it for the new loan terms, the old mortgaeg or deed of trust will be released and the lender's policy is insuraing something that no longer exists (IOW, it provdes no coverage).

And there are several reasons why most lenders are not interested in a note prucahse and modifcation program; in addition, you will still need to buy several title insurance endorsements and it may not dave you any money.

Regards, JAFO

Disclaimer

Yes, I am a lawyer, BUT THIS IS NOT LEGAL ADVICE; it is only general information. NO CLIENT RELATIONSHIP IS INTENDED TO BE CREATED, NOR IS ANY SUCH RELATIONSHIP SO CREATED. FOR SPECIFIC LEGAL ADVICE YOU SHOULD TALK TO A LAWYER IN YOUR AREA.

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124606 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:11 PM
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Hi Wot,

Is the closing agent who's coming to sign the documents going to know the answer to this?
When you say "coming to close this" I am assuming you are signing at home, or your office, or some place other than the title orescrow office, yes? If so, you are probably going to be sitting with a mobile notary, not an escrow agent... and its extremely unlikely the notary will know much of anything at all about the balance details of your transactions.

Will they know what the current escrow account balance is?
Not likely. The person you want to get this from is the escrow agent.

Further, you can have a fairly rough ballpark idea of the amount in escrow you'll get a check back for if you call customer service from your current payment statement & ask them how much escrow balance you have at this point.

Luck,
Dave Donhoff
Leverage Planner

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124607 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:14 PM
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WotPeed: "
How are my taxes and insurance being paid if those payments are being added to the loan balance rather than the escrow account?"


With funds from the lender, which is why the loan balance is increasing.

"Does the lender put them back into the escrow account for me?"

What "lender"? "them" what? Which escrow account?

Regards, JAFO

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124608 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:22 PM
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WotPeed: "I just got an email reply from my loan officer:

<<<I will explain it [lines] 1002, 1004 and 1320 are paid at the time of the closing because the taxes and HOI requires to have resolved before completing the rate re-finance. If you look a 206 you receive a credit (amount that’s already n your escrow) for prior loan. So Chase has to reestablish your escrow account. Also, when you see your new statement it should reflect the breakdown of escrow and principle.>>>

I still don't see how the numbers add up. There's about $2100 being added to the loan balance to cover property taxes and HOI (line items 1002, 1004, and 1320). I now see that I'm receiving a credit for $915, which is supposed to be what's in my existing escrow account. Where does that extra $1185 go?"


http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf

Line 1000 series are for reserves being deposted with your new lender.
1002. Homeowner’s ins. ____ months @ $____ per month [total]$______
1004. Property Taxes ____ months @ $____ per month [total]$______

IIRC, Lender's are allowed two month's cushion; also remember that first first regular payment is often not due to the first day of the second month following the month in which closing occurred (unless you close on the first day of a month). This should be a relatively straightforward calculation.

Line 1300 series are for additional settlement charges. No way of knowing what those charges are for without reading your closing statement.

Regards, JAFO

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124610 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:32 PM
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WotPeed: "Is the closing agent who's coming to sign the documents going to know the answer to this?"

What documents will the closing agent be signing. Virtually all th loan documents need to be signed by you as borrower. I suspect that the closing agent will not know many (if any) of the details behind the numbers on the closing statement; though he or she should be able to explain the closing statement.

"Will they know what the current escrow account balance is?"

Highly unlikely. Only your the servicer on your existing mortgage is likely to know such balance.

whoever wrote: "After about 3-4 weeks after you close & fund, the prior servicing company will send you a check reflecting the remaining balance of your old escrow account." laregely nailed it.

Regards, JAFO

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124612 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 5:52 PM
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Chase Payoff – loan number xxxxxxxx: 187,951.89
Principal amount of new loan: 190,148.00


So you are adding about $2200 to your loan. Perhaps a bit more if that Chase payoff amount includes any interest or payoff fees.

Since money is money is money, it's impossible to say that you're adding any specific item to your loan. But that extra $2200 is money that you are borrowing, and is being used so that you don't have to pay (or pay as much) out of pocket to get the refinance.

--Peter

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124613 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 6:00 PM
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The line item that my loan officer said was from my existing escrow account balance is actually labeled "Lender Credit towards Closing Costs". That didn't sound like the balance of my escrow account to me.

That is typically the amount the new lender is giving you as a rebate because you chose to accept an interest rate that is a bit higher than the current going rate. If you took a lower interest rate, this lender credit would be smaller or non-existent. And you could get a rate even lower than that by paying some money up front instead of the lender paying you.

Typically, these rebates are used so that you can refinance with less or no money out of pocket. The other way to accomplish that is to borrow a bit of extra money to pay the refi expenses. And combining both is also quite common.

So are you trying to get a "no closing cost" refinance?

--Peter

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124614 of 127465
Subject: Re: Escrow items during refi Date: 1/25/2013 6:29 PM
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So are you trying to get a "no closing cost" refinance?

I didn't request it (that I recall) but don't mind doing it this way, as long as I understand what all the numbers are for.

I decided to postpone the closing until next week. I emailed the loan officer and her supervisor asking for clarification on these items. I'm hoping her supervisor will jump in and clarify things for me.

And to the previous poster who said that property taxes must be due soon, I checked and indeed the payment is due on Feb 1. Hopefully pushing the closing out until Monday (the 28th) won't be cutting things too close.

Wot

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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124615 of 127465
Subject: Re: Escrow items during refi Date: 1/26/2013 9:29 AM
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Don't cut off your nose to spite your face.

The price is the price, and unless they've made some kind of egregious error, your questioning them is not going to change anything. Remember that even though all the nitty-gritty details (about taxes, escrow accounts, etc.) are new to you, the people who prepared the paperwork do all this a couple of dozen times a day, and almost certainly know what they are doing.

If they've added some closing costs to the mortgage instead of making you pay out-of-pocket, that's good. At these low interest rates, I'd prefer to borrow as much as possible (within reason).

The risk you face in delaying the closing is that rates will jump and you will get stuck with a higher rate. Frankly, that's a risk I would not take. Certainly not over questions about a piddly amount of money like this, in an area where the answer to the question is not likely to change anything.

It's annoying when things like timing of taxes is such that you get caught in a cash-flow pinch. Been there myself. But all it does is shift the timing of the payments -- it's not that you will have to pay double tax or lose your house because the tax didn't get paid.

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124616 of 127465
Subject: Re: Escrow items during refi Date: 1/26/2013 11:06 AM
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The price is the price, and unless they've made some kind of egregious error, your questioning them is not going to change anything. Remember that even though all the nitty-gritty details (about taxes, escrow accounts, etc.) are new to you, the people who prepared the paperwork do all this a couple of dozen times a day, and almost certainly know what they are doing.

Point taken, and I tend to agree with you. Normally I'd just assume I was missing something and trust that everything would work itself out properly. But in this case the loan officer I've been dealing with really doesn't give me the impression that the bolded part of your statement is true. That's what made me uneasy.

I'm hoping that she's really more of a customer interaction person and that all the real work is being done by other people.

The risk you face in delaying the closing is that rates will jump and you will get stuck with a higher rate.

The rate's locked at 3.25% so there's no danger there. I'm sure this will all get cleared up with a phone call on Monday so I'm not really worried about it as long as the signing can be rescheduled for Monday.

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Author: CCinOC Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124618 of 127465
Subject: Re: Escrow items during refi Date: 1/26/2013 12:51 PM
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Both, I think. She's been really bad at answering the few questions I've had.

That's why I think it's important, during the "interview" process before you hire a loan originator, to have a few exchanges with that person in the method you're going to use going forward.

I typically communicate with my customers via email, especially if a married couple is considering using my services. That way, they can share my communications and nothing gets lost in the "Well, honey, she said..." exchange between husband and wife.

If your loan orinator did a poor job explaining her services at the get go, she's not going to get any better as the process continues.

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Author: CCinOC Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124619 of 127465
Subject: Re: Escrow items during refi Date: 1/26/2013 1:01 PM
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The risk you face in delaying the closing is that rates will jump and you will get stuck with a higher rate. Frankly, that's a risk I would not take.

MBS (mortgage backed securities) lost 45 basis points between 1/24 and 1/25, causing rates to increase by .125-.25.

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Author: CCinOC Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124620 of 127465
Subject: Re: Escrow items during refi Date: 1/26/2013 1:05 PM
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But in this case the loan officer I've been dealing with really doesn't give me the impression that the bolded part of your statement is true. That's what made me uneasy.

The loan officer has very little to do with the closing of your loan. Unless she initially made unilateral decisions about how to apply the new loan amount to your (1) old loan amount and (2) costs associated with the new loan, there are several other people (funding and escrow) who are applying the new loan amount according to hard closing costs (Section 800) and prorations (everything else).

These people rarely make a mistake, in my experience.

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