What happens to my escrow balance if I refinance with the same bank?
I know if I refi with a DIFFERENT bank they will send me a check within 21-45 days (depending on state), but what if I refi with the SAME bank? Can I apply my escrow balance of the old loan to the closing costs of the new loan or would I have to provide new funds for my closing costs and wait for the bank to send me my remaining escrow balance from the old loan?
- kemperkLv 71 decade agoFavorite Answer
call both the escrow firm and the bank and let them know what you are sharing here; take the
mystery out of this NOW!!Source(s): RE broker
- Beverly SLv 71 decade ago
Even with the same company they will set up new escrows, you will receive a refund on the old escrow balance, which by law has to be mailed by the 30th day after the first loan is paid off.Source(s): 24 years mortgage lender.
- acermillLv 71 decade ago
If and when you refinance with the same lender, generally it will continue your escrow in a fashion similar to that in your previous loan agreement. Understand that your escrow account is nothing more than a 'monthly payment deposit' to handle taxes and insurance payments due at a certain time. If you change lenders, you will be paid out whatever is in the escrow account, but you will be required to replenish a similar account at your NEW lender.
- Arbor MortgageLv 41 decade ago
MOST lenders (not all) will apply the escrow balance to your payoff, so you are getting credited for it at closing. Then you will fund a whole new escrow account at close. It's generally a wash.Source(s): Mortgage lender
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- 4 years ago
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- Anonymous4 years ago