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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.

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