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Personal Finances / Buying or Selling a Home


Subject:  Re: Escrow items during refi Date:  1/25/2013  5:22 PM
Author:  JAFO31 Number:  124608 of 128973

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?"

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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