Texas Refinance Rates: Should you bank escrow with higher closing costs or self-pay and reduce closing costs?
Texas Refinance Rates: Should you let the bank escrow and have higher closing costs or self-pay them and reduce your closing costs?
When you refinance, you will get a refund from your current mortgage company for this year’s escrow balance. Normally you get this 30 days after your new loan starts or the old loan
stops. However, if you escrow the new loan and want to roll closing costs AND pre-pays into the new note, your loan amount will be higher. Therefore you’ll have a higher payment. Another option is coming to closing with your new escrow.
It’s important to remember why you’re refinancing in the first place… to lower your payment and/or principal interest as much as possible.
My suggestion is do a private escrow and get the best of both worlds. Consider refinancing without a bank escrow. Go to your bank and open a savings account that doesn’t have a debit card attached to it and have them auto transfer your monthly taxes directly to this property-tax saving’s account.
This way you don’t have to raise your loan amount and since the bank is going to deposit your monthly taxes into a stand-alone account, you’ll never have to worry about your tax bill at Christmas time! Lower payment, never worry about your taxes, no stress!
Do you have mortgage refinance questions? Interested taking advantage of the record low Texas mortgage refinance rates? We’re a local Texas mortgage lender that’s been helping people all over Texas accomplish their mortgage refinance goals! Give us a call today!
Dallas: 972-325-2120 Houston: 713-589-2244 Austin: 512-996-8194




