Refi Question

[Anonymous]

I've decided to refi on my original 30-yr, 6.29%

I've got a rate of 5.00 on a 20-year, with no points from my CU and have received all the disclosures to sign.

My question is, on the Good faith Estimate, under the Pre-Paids they have 5 months of property tax listed...but I had told them there was to be no escrow since I pay the property tax myself, and have been for years (loan is for $79k on a $225k house).  As a matter of fact, the property tax bill will be due about 4 days after I close.  Anyone have any idea if they will take this off? 

[DallasLoanGuy]

you need to ask them....

they should be able to

when you say taxes will be due 4 days after close... do you mean they are due now and you have until that date? or is that the date you are first presented with the tax bill?

[Anonymous]

I'll probably get the tax bill in the next week or 2, and they'll be due Dec 1st

[DallasLoanGuy]

typically, they are due when you get the bill and late after dec 1st or whatever date that is.

if so, the lender will want the taxes paid at closing

[Anonymous]

The bills typically come out about 6-8 weeks ahead of the due date (we get tax bills every six months), and I usually walk down to Town Hall and pay on the due date (I like to keep earning interest for as long as possible).  I'll call the lender and ask what the deal is and if necessary I'll go to Town Hall and pay before I go to the closing.

[ShanetheMortgageMan]

They might have thought you wanted to set up an escrow account, if you don't say anything usually they'll set your loan up with an escrow account.  Let them know you don't want the escrow account and then no reserves for the escrow account should be collected for.  However in the situation Dallas described they may still be requiring your next installment to be paid through the closing, but that wouldn't appear as reserves for the escrow account, it'd be a line item simply saying "1/2 Half Taxes 2009" or something along those lines.

Message Edited by ShanetheMortgageMan on 09-25-2009 10:23 AM