Author Topic: Canceling Escrow and earning interest  (Read 945 times)

2buttons

  • Bristles
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Canceling Escrow and earning interest
« on: May 04, 2016, 10:49:50 AM »
Any of you cancel your escrow account on your mortgage and save the cash yourself?

I am thinking that this is a way to at least capture some of the interest every month that I think the lender gets to keep.

Any advice?

forummm

  • Walrus Stache
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Re: Canceling Escrow and earning interest
« Reply #1 on: May 04, 2016, 11:44:51 AM »
Sometimes the interest rate on your loan is higher (0.25% is what I've seen) if you don't have an escrow account. I'm not even sure if my loan allows me to cancel the escrow account.

tralfamadorian

  • Handlebar Stache
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Re: Canceling Escrow and earning interest
« Reply #2 on: May 04, 2016, 11:51:51 AM »
Same here.  I just closed on a house last week and the increase on the internet rate on the loan more than wiped out any benefit of short term gains on holding the money myself.

2buttons

  • Bristles
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Re: Canceling Escrow and earning interest
« Reply #3 on: May 04, 2016, 01:49:44 PM »
Interesting. I spoke to my lender and they had a bunch of hoops you needed to jump through, but said there was no cost to do it, and no mention of rate increase. Maybe because I am trying to do it after the fact?  The major hoop I have to jump through is six months of consecutive payments. I just refi'ed so its going to be a bit, but will report back once I learn more.