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Escrowing with HARP

I put down 20% when I bought my home and, as a result, do not escrow. If I refinance under HARP with my current loan servicer, I have confirmed I am still not required to escrow. If I refinance under HARP with a different participating HARP program lender, am I required to escrow? Thank you, in advance.
  • May 12 2013 - Ocean View
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Answers (5)

Hi,
I posted you question to 6 lenders with whom I work.  I will send you their replies when I get them.  Keep watch and thanks for the intelligent question.  I'm curious to know the answer as well.
  • May 12 2013
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No escrow required for HARP refinance if you are not escrowing currently.
Tim - why waste 5 lenders time asking question.  That is what lenders participating on Zillow do in a few minutes typically.
  • May 12 2013
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It depends on the lender. Some lenders require it when others give you an option.  However most lenders when you elect not to escrow they raise the rate just a tad. So it usually makes more sense to escrow.
  • May 12 2013
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In general HARP loans will require you to escrow if the LTV is greater than 80%.  Not every bank will underwrite HARP loans to the letter of the guidelines.  You should check with different lenders to see if they would require you to escrow.

 
  • May 21 2013
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You do not have to escrow with HARP if you do not escrow now.  If any lender tells you have to escrow with the HARP program it is a lender overlay and not a HARP guideline.

  • May 22 2013
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