? about escrow

[Rafa]

My 1st house and 1st year in it. I have escrow for tax/ins/pmi. Gonna call the bank,but I wanted some more info before I call them. I want to drop my escrow and pay it at end of year. Have no problems to pay it at end of year. I rather make money off of it than have them make it. Is it as simple as just calling them to stop it?

I have an FHA loan if that matters

[Treasure Chest]

An escrow account is a condition of FHA funding.

[mstng86]

I think you have to refinance if it is FHA.

[Rafa]

Think I would be able to leave the pmi on it and take off the rest?

[Real Estate Nate]

How much equaty do you have in the house?

If you don't have enough don't worry about dropping escrow or pmi

[Treasure Chest]

Think I would be able to leave the pmi on it and take off the rest?

No. Even with a conventional loan, you still have to pay taxes and insurance through the escrow account if you have PMI. Once PMI falls off, you have the option to close your escrow account and pay taxes and insurance yourself. But that's only speaking in terms of conventional loans.
With an FHA or VA loan, an escrow account cannot be waived or altered.

[Vertnut]

Here's what I was told: If you are 20% into your original mortgage (and you're not refinancing), you can request to drop PMI. On a re-fi, you need 20% worth of equity to not be required to have it.

[bcoop]

Here's what I was told: If you are 20% into your original mortgage (and you're not refinancing), you can request to drop PMI. On a re-fi, you need 20% worth of equity to not be required to have it.

And from what I hear, it's a real pain in the ass to get it dropped. You're out an appraisal, etc.

[Rafa]

thanks peeps...kind of sucks,but oh well. I'll just work on getting it down to 20%

[Lone Sailor]

PM SVT Lurch, he's a smart cracka.