Refinance question reg Escrow and Prepaid

[Anonymous]

My refinance is closing at the end of the month. Prepaid interest is for 1 day but escrow reserve for taxes is 7 months (October - MD). But If close on Nov 1, I believe the prepaid is for 30 days, but Escrow reserve is only 1 month (November). Which is advantageous and would work better? Please help and advise. Also let me know if I have missed any other details.

Please note: I'm not 100% about the advantage/disadvantage of Escrow reserve. Only positive was my rate was slightly lower.

Sorry for cross posting.

Thanks

[StartingOver10]

If the rate is only slightly better, why are you refinancing now? Are you saving somewhere else...like dropping PMI?

[Anonymous]

I meant the rate was slightly better by taking an escrow vs no escrows ...sorry I was not clear

[DallasLoanGuy]

one options rolls in more money into the loan.....  and gives you an escrow refund check from the old lender after closing.

the other only rolls in the 30 days of interest... less rolled into loan and no escrow refund check.

i guess this is because taxes are due nov 1st?

[Anonymous]

Thanks for your reply. My first mortgage had no escrow. So what are the 2 options now?

[DallasLoanGuy]

lender should be able to put two scenarios side by side for you.

there is no 'advantage' to doing it one way or the other.

just preference