Trulia Community - Advice from neighbors and local experts

Find Your Community
We couldn't find that location. Please try again.
Get Expert Advice

Financing in East Brunswick : Real Estate Advice

  • All180
  • Local Info29
  • Home Buying86
  • Home Selling7
  • Market Conditions7

Activity 2
Wed Jun 13, 2012
Hi Anibee,

Yes FHA does require to you pay FHA MIP for a minimum of 5 years. But if you were planning to pay down the balance 20%, maybe you would be better off refinancing out of the Mortgage Insurance and out of FHA all together. If you would like to discuss options, please feel free to contact me, I would love to help.

Mickey Ballantine
Parsippany, NJ

See my testimonials on my reference page for confidence!
... more
0 votes 3 answers Share Flag
Sun Nov 7, 2010
x answered:
How much you need in escrow depends on:

1. Exactly when you close
2. The last time your taxes and insurance were paid by the prior lender
3. When your taxes and insurance are due next

Escrows for your loan might differ from escrows for my loan if the prior lender has not paid the current tax bill.

You can kinda figure it out on your own. Just determine when your next tax bill will be due after you close, Let's assume it is a 6-month tax bill (2 quarters) due Feb 15, 2011. If you close in November, you won't make a payment until January 1 - at the earliest. So, by Feb 15, you will have made only 2 payments and only 2 months taxes would be in escrow. But you will need 6 months available to pay the Feb 15 tax bill. The only way to get the additional 4 months plus have 2 months cushion is to collect it from you at closing. But you don't lose anything. Much of that 6 months should be sitting in your current escrow account and it will be refunded to you after you close the new loan.

Do the same calculation for your homeowner insurance.

It wouldn't be much different at another lender. Maybe one month difference.

The mortgage payment and interest is what it is.

FYI, in some areas, like Philadelphia, escrows for taxes can be as much as 13 months depending on when the new loan closes. In New Jersey, it can be as little as 2 months. Each loan is different.

Unfortunate that your loan officer could not or was unwilling to explain this to you.

On a positive note, if you went through the refinance process and your only source of discontent is how they calculated escrows, that's a good thing.

Good luck.

Carol Lloyd
... more
0 votes 6 answers Share Flag
Search Advice
Financing in East Brunswick Zip Codes