Posted by ron on April 06, 2006 at 10:44:53:
I guess I’ve kind of looked at it the last few months more closely
I haven’t looked at past bills for a yearly overview
I will have to look into that.
escrow account with lender - Posted by ron
Posted by ron on April 03, 2006 at 16:50:04:
Let’s say I have been paying on a rental for 4 years
and my statement shows
$1350 for principal and interest
and $250 for escrow
then say the payment is $1600 per month
let’s say I’ve been paying what they ask for years
the $1600 for example.
If my escrow balance shows like 1300-1400 balance
I would assume that I have reserves since I don’t
have a negative sign next to it.
My questions is, can I just send in $1350 for a little while, and let that escrow go down to maybe $400 or so, then start paying the $1600/mo again?
It just seems like a waste to have all of that money in escrow.
What are peoples experience with lenders on this?
Re: escrow account with lender - Posted by Natalie-VA
Posted by Natalie-VA on April 05, 2006 at 21:42:11:
Ron,
Doesn’t your lender reconcile your escrow account each year to adjust for the current insurance and tax payments?
–Natalie
Re: escrow account with lender - Posted by dealmaker
Posted by dealmaker on April 03, 2006 at 22:08:59:
If I’m your lender you’ll be in default, probably your lender will consider that too! Your loan agreement probably states that there is a formula for calculating HOW MANY months of insurance and taxes to be held.
If your insurance bill gets paid next week and it’s $1100, all of a sudden you only have $200 in escrow and they might send you a “payment adjustment” jacking you up to $1900/month to get you caught up.
Best thing is get you LTV down to the point where you’re handling your own I and T, assuming you’re responsible enough to keep the money around for when it’s needed.
dealmaker