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How to get out of your mortgage escrow account?

Aundrea M - 2007-05-27 14:22:27 - Renting Real Estate

We have Chase for our home loan...does anyone know how hard it would be to get our of escrow account that pays our taxes and insurance. We want to pay those on our own.

Best Answer:

It depends on what your mortgage contract says. Some do not allow escrow accounts to be dropped at all, some allow them to be dropped only after you have paid down to a certain % of the original loan or the original value, and some allow them to be dropped at any time. The best thing to do would be to call Chase and ask them what the requirements are for your loan. If they will not let you drop escrow accounts from your current mortgage, you may need to refinance. If so, be sure to set up the mortgage from the beginning with no escrow accounts.

Answers:

It depends on what your mortgage contract says. Some do not allow escrow accounts to be dropped at all, some allow them to be dropped only after you have paid down to a certain % of the original loan or the original value, and some allow them to be dropped at any time. The best thing to do would be to call Chase and ask them what the requirements are for your loan. If they will not let you drop escrow accounts from your current mortgage, you may need to refinance. If so, be sure to set up the mortgage from the beginning with no escrow accounts.