http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html like a friend telling you about money ... Sun, 14 Mar 2010 23:00:26 -0500 http://wordpress.org/?v=2.8 hourly 1 http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html/comment-page-1#comment-2675 TFB Fri, 11 Sep 2009 04:55:44 +0000 http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html#comment-2675 Clare - I don't know if it's a Freddie Mac rule or not. If the fee is too high, just decline the escrow waiver and do the escrow. You will have to pay the property taxes and hazard insurance anyway. It's just a matter of paying them every month versus paying them a few times a year. I cannot justify paying someone a hefty fee just to waive escrow. Clare – I don’t know if it’s a Freddie Mac rule or not. If the fee is too high, just decline the escrow waiver and do the escrow. You will have to pay the property taxes and hazard insurance anyway. It’s just a matter of paying them every month versus paying them a few times a year. I cannot justify paying someone a hefty fee just to waive escrow.

]]> http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html/comment-page-1#comment-2673 Clare McCright Fri, 11 Sep 2009 03:29:25 +0000 http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html#comment-2673 Property taxes and home/hazard insurance are higher in my state. I was told that it was a Freddie Mac rule that I must pay a .5% "fee" for the escrow waiver. That's significantly higher than you indicated. Have I been misled? Property taxes and home/hazard insurance are higher in my state. I was told that it was a Freddie Mac rule that I must pay a .5% “fee” for the escrow waiver. That’s significantly higher than you indicated. Have I been misled?

]]> http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html/comment-page-1#comment-2031 TFB Thu, 14 May 2009 04:43:42 +0000 http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html#comment-2031 Marcia - Thanks for the caveat. Unfortunately I'm not able to deduct property tax no matter in which year it's paid. It's still a good point for others though. Marcia – Thanks for the caveat. Unfortunately I’m not able to deduct property tax no matter in which year it’s paid. It’s still a good point for others though.

]]> http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html/comment-page-1#comment-2028 Marcia Wed, 13 May 2009 20:42:17 +0000 http://thefinancebuff.com/2009/05/is-an-escrow-waiver-fee-worth-it.html#comment-2028 If you decide not to waive the escrow, be sure to ask WHEN they pay the property taxes. Where I live, we have until January 31 to pay without penalty but if they are not paid by Dec. 31 you have to wait until the following year to deduct them from your taxes. My lender did not pay the taxes before Dec. 31 so I missed out on my deduction the first year. If a buyer is counting on that deduction in the first year of purchase, he/she would be wise to establish when the lender will make the payment before agreeing to the escrow account (or plan accordingly). If you decide not to waive the escrow, be sure to ask WHEN they pay the property taxes. Where I live, we have until January 31 to pay without penalty but if they are not paid by Dec. 31 you have to wait until the following year to deduct them from your taxes. My lender did not pay the taxes before Dec. 31 so I missed out on my deduction the first year. If a buyer is counting on that deduction in the first year of purchase, he/she would be wise to establish when the lender will make the payment before agreeing to the escrow account (or plan accordingly).

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