Many homeowners prefer the ease of an escrow accounts. According to the Federal Trade Commission,”An escrow account is a fund held by your servicer that you pay to real estate taxes and homeowners insurance.” Generally, your loan servicer will apply the principal and interest part of your mortgage payment toward your loan balance, while keeping your payments for escrowed things until they become due. Ordinarily, a loan servicer will disburse payments for escrowed things such as property taxes, school taxes, homeowner’s insurance and association fees on an annual or semiannual basis. Most mortgage companies will eliminate your escrow account upon request, provided you have enough equity inside your premises.
Find the value of your dwelling by using the Home Gain website. Get an instant property evaluation. Enter your street address and zip code to acquire the market value of your home.
Review a mortgage statement to determine your loan balance.
Call a real estate appraiser to inspect your home. A certified appraiser can provide a report that indicates the condition and current market value of your home. The worth of your home is base on recent comparable sales that are alike in size, design, condition, age and allure.
Compute the loan-to-value (LTV) to your home by using the Bank Rate calculator (see Resources). Enter the value of your home and your mortgage balance, where suggested. If the calculation for the LTV reflects an amount below 80 percent, you need to qualify for a waiver of your escrow account. The formula used is normal for the industrynonetheless, you need to contact your lender for clarity.
Present your mortgage lender with a written evaluation report and request an escrow waiver.