No. of Recommendations: 4
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.

Dave Donhoff
Leverage Planner
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.