In the past you were required to set up escrows for your property taxes, homeowner's insurance and flood insurance if the conventional loan was above an 80% loan to value. And, it cost you extra money to waive the setup of them if you were under the 80% loan to value.
That is no longer the case! You now have the ability to pay them on your own. The beauty of this has multiple advantages. Your loan payment will never change due to no changes in the escrowed items. You can save yourself several thousand of dollars in additional closing costs to set the escrow up with 3 additional monthly payments collected at closing. You can make interest on your own money (good luck with savings rates the way they are these days) but it's still a request I hear from borrowers.
Recently a client contacted me regarding his new loan servicer wanting to collect over $2000 to adjust the escrow account when his insurance was due. They were literally increasing his payment by over $200 a month. This is not the mortgage statement you want to see!
You can now avoid this all together by waiving the escrows for taxes and insurance at closing, with no additional cost to you!
If you have any questions, please reach out to me: Sherry Bitner, NMLS #197312, RE Financial Services, Inc. 1641732, 941-504-1445 Sherry@SherryBitner.com