Couple of Big things today

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Originally Posted by EAVdog

Watch out for who buys your mortgage. Green Tree and Wells Fargo bought the mortgage for both our properties. Within a couple of months they both upped my mortgage and said they had to because they hadn't estimated enough withholdings for the escrow account. I never had that problem before. Seems like bullshit to me, since they both increased my monthly payment by more than 10%. I'm going to be hawking my tax bill this year and on their ass for a escrow reimbursement at the end of the year.

Green Tree also takes over 10 days to process payment. If they don't process it before the late period they try to charge me a late fee. Thank goodness I use Bank of America Billpay so I can track the payments. Everything about them has been shady as hell. I hope you don't have to deal with them.

(rant off)

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I refinanced last year and Wells Fargo bought the loan immediately. They started withholding double of what I was paying in escrow before. They were using estimated property tax, as opposed to what I was actually paying every year. The guy acted like it was no big deal because I would be refunded after taxes and insurance was paid. He made it seem as if it would be a disaster if I came up short. I was like "You just loaned me $200,000, and you are worried if my escrow account comes up short by a few bucks? He wouldn't budge, and I felt pretty powerless. I ended up getting back $2000 from escrow overpayments.

I changed insurance providers recently to a LOWER rate. I to call WF because they haven't paid the insurance company. The lady said that I should be getting a check back for my former policy holder and that I need to send it in to them since they "took cafe of" the new premium. Ummm, it's my damn money. I took care of it. They also had just went up another $15 a month on my escrow.

It's frustrating to say the least, so avoid WF, if possible. When I called in, I had to enter my account # 3 times and my SS twice, plus a half dozen other press options before I got a real person.

I had BofA and Citi both royally screw up my escrow over the years. When I refinanced I went with no escrow - then I set up a direct deposit from my pay into an extra savings account that I use only to pay annual type payments. I get the bonus of controlling the money, getting a little interest, and not having to deal with those 17rs any more than I have to.

I'm an LO at local mortgage lender! Not a bank where the LO's are not licensed or schooled! You cannot eliminate PMI OR MI with 5% down payment! If you are in rural area you can do a USDA loan, however you will have a 2% upfront MI and .04 per month! On FHA Loans you never get rid if MI ! If your credit scores are good you can do a conventional loan with as little as 5% down with no "Upfront" PMI! Your Monthly PMI will drop off at the time your LTV (loan to value) reaches 80%! If you need to know more PM ME

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Originally Posted by rabbitthedawg

I'm an LO at local mortgage lender! Not a bank where the LO's are not licensed or schooled! You cannot eliminate PMI OR MI with 5% down payment! If you are in rural area you can do a USDA loan, however you will have a 2% upfront MI and .04 per month! On FHA Loans you never get rid if MI ! If your credit scores are good you can do a conventional loan with as little as 5% down with no "Upfront" PMI! Your Monthly PMI will drop off at the time your LTV (loan to value) reaches 80%! If you need to know more PM ME

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I can't tell if this is a spam bot! If it is, it is very excitable!

Are there any rules concerning opting out of an escrow account?

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Originally Posted by bulldogcountry1

Are there any rules concerning opting out of an escrow account?

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20% down or have 20% equity on a refi

on my new one I got a conventional 30 yr, to start and, may refi in a year or two, or either add to the principal every month or bi-weekly.. I was able to put almost half down from a HELOC at 1.75 %, which I will pay off and close when we close on our existing house next week. I didn't have to pay any PMI, but the closing costs stung a little... but I used the Heloc to cover that and just financed a little more on the loan.. I had the money in savings, but it caused too much confusion with the money coming from 3 accounts...

Bancorp South was really good on this one, and like I said, they will keep the loan in-house...

[QUOTE=rabbitthedawg;230667]I'm an LO at local mortgage lender! Not a bank where the LO's are not licensed or schooled! You cannot eliminate PMI OR MI with 5% down payment! If you are in rural area you can do a USDA loan, however you will have a 2% upfront MI and .04 per month! On FHA Loans you never get rid if MI ! If your credit scores are good you can do a conventional loan with as little as 5% down with no "Upfront" PMI! Your Monthly PMI will drop off at the time your LTV (loan to value) reaches 80%! If you need to know more PM ME[/

There is too much inaccurate info here for me not to correct it. I need to be the ED mortgage guru apparently.

1. Mortgage bankers are in fact licensed per federal law; just like a broker. They also have to take tests and continuing education.
2. You most certainly can eliminate PMI without putting down 20%. I do loans all the time with as little as 5% down and the borrower buys out the PMI on the front of the loan. It's called single paid mortgage insurance. We do the on refinance loans as well.
3. On the USDA, it's not called MI or PMI. the upfront 2% is a government guarantee fee to back the loan in case of default. The monthly factor is not .04%; it's actually .4%, which is a huge difference. This monthly factor is called a monthly annual premium. It will decrease every 12 months as it is recanted based on your principal balance every 12 months.
4. Your monthly PMI does not drop off at 80% on Conventional loans. It is actually 78% when it drops. The 80% mark is for the purchase or refinance loan to value.

If any of you every need to pick my brain on mortgages, shoot me a PM and I'll give you my cell or email. I'm licensed in 48 states.

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Originally Posted by bulldogcountry1

Are there any rules concerning opting out of an escrow account?

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Yes on the front end tell your lender. Fannie Mae requires a .25% discount point hit. I always waive that and never charge anyone. You also cannot elect to waive them if your loan to value is over 20%. Also any government backed loan (FHA, USDA, VA) will not allow it period, so Conventional would be the only option.