She is asking about the escrowed funds added to the mortgage to cover the taxes and insurance. This is the TI in the PITI amount.
I have asked several lenders if I can pay my own taxes and insurance each year when it is due since i have ample funds to do so. Every time I am told NO, the lender wants to collect those funds and pay the tax and insrance when it is due for two reasons. 1. It is SOP and what they are use to doing and changing is like rowing a boat up stream for them. 2. It protects the lender so they KNOW it has been paid should a fire break out and they find out you only told them you paid the fire insurance when you didn't. I have been told that sometimes when you initiate a new loan you can get it your way, but once set it is impossible to change it. I wish you good luck.
Conventional loans with 20% equity in the home allow for self paid taxes & insurance.
We're a local direct lender, and can answer any other questions you may need. (732) 938-2252 x 303
I would suggest calling both of these companies
residential home funding- tina or camille..732 814 8169 and call matt patterson at guaraneed mortgage co 732 604 7025
I offer my assistance in finding the right home
barry e nifoussi, gri,crs
century 21 nifoussi realty 732230601
When applying for a new mortgage or a refinance, we offer our customers the choice of escrow or self pay, however if you go with an FHA Loan, escrow is mandatory by law, with all other types of loans you will have the option of escrow or self pay.
If I can be of any further assistance to you, please feel free to contact me at 848-480-2354
Now is a great time to refinance and/or purchase, interest rates are at an all time low .....
Have a nice day.
Margaret J. Paparesta
Mortgage Loan Originator
Residential Home Funding
Toms River, NJ 08753
The ESCROW company collects the funds from parties, and holds it as a third party, until the Escrow closes.
They also handle all the paperwork.
Probably, things are a little different for ya'll in N.J., with Attorneys.
The Escrow Company is usually also the TITLE company; which does the title search, looks for LIENS, and dispenses TITLE INSURACE to cover you.
In any case, the BANK is not the recipient.
Be sure to get your GFE from the Lender, and your HUD1 from the Title Company.