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  • fchu
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if I ref my loan in the future

once I get down to 79% lLTV what will happen to my escrow account.

will I get a total refund because right now I am paying double pmi,ins and property taxes all bundled every month and $3000 in escrow just sitting there,.
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October 26 2010 - Brentwood
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Answers (8)

Click on the following link. This will take you directly to the guideline from the HUD/FHA.

http://www.fhaoutreach.gov/FHAFAQ/answerPre.jsp?solutionid=AAVA-2F1T6A

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November 07 2010
As mentioned below, if you have a FHA loan and you have not completed 5 years of paying the MIP, the only way around the  5 years is to refinance into a conventional or VA home loan.  If you have a conventional loan, you will need to contact your servicer to determine the parameters and procedures to remove the MI.  In either case(s), unless you have overpaid your scheduled mortgage insurance, there are no refunds.

Hope this helps!

Do not hesitate to call or email me with any questions.
Steve
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November 04 2010
If you mean by escrow your MI account, you will only get some back if your FHA upfront MI has not been depleted.  You financed it, so it's your money, but some of it goes to pay the premium every month.  In 5 years time it will be gone and no refund money will be in there.  FHA is 78ltv, not 79, to get out of your MI.  You will have to pay for the appraisal and file for removal. 
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November 02 2010
"From November to February is 3 months & 7 months from February to November. "

And all this time I thought there were 12 months in a year rather than 10 ... go figure!
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October 27 2010
You should call your servicer/lender. Most likley they will charge to go with a no escrow loan. I was told of one bank that charged .25% fee to do it.
So you will have to weigh if it is worth it to you to do it.
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October 27 2010
What do you mean you're paying double PMI, taxes and insurance?

Once you fall below 79% loan to value you can contact your lender and request that escrows be waived.  You lender/loan servicer may require you to obtain an appraisal and/or pay other fees.

Remember the 1st half of your property taxes are due November 1st and considered delinquent if paid after December 10th.  The 2nd half are due February 1st and considered delinquent if paid after April 10th.

With those dates in mind there will be months when you have more money in your escrow account then you think there should be.  From November to February is 3 months & 7 months from February to November.  So it's normal to have a higher balance between November & February after you pay your 1st half taxes.   So that $3,000 you think is just sitting there, isn't just sitting there it will be used to pay your tax bill in February.

Federal law and the majority of States allow for the collection of a reserve amount to maintain a reserve/cushion for unexpected tax and/or insurance disbursements from or increases to your escrow account. The Total Reserve Requirement is a percentage of your Total Annual Escrow Amount Needed.

Under federal law (RESPA), lenders are required to perform an escrow analysis once every twelve months.  If after your escrow account is analyzed you have a surplus of $50 or more above the allowed reserve/cushion, it should be refunded to you, provided your loan is current. If your loan is not current the additional funds will remain in your escrow account until your next scheduled escrow analysis.

If you feel that there is an error with your most recent escrow analysis or that an interim analysis may be necessary due to recent changes with your escrow payments contact your lender and request the interim analysis. 
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October 26 2010
You can petition at 78% LTV documented with your appraisal. After your escrow account is depleted you will be responsible for your taxes and insurance. Or, you could refinance at today's low rates at 80% LTV.
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October 26 2010
You can always petition the lender/servicer to waive escrows in the future.  You should not have to do a refinance to make that happen.  They may require you to obtain an appraisal and/or pay a fee, but you should be able to accomplish this.  I am unclear on how you are paying double pmi, ins and taxes as federal law restricts the amount of "overage" that can be in an escrow account.  Remember taxes are not paid in 6 month subsequent payments in CA, so there are some months you will have more in the escrow balance.
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October 26 2010
 
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