Canceling escrow

[sweeps]

Hey, has anyone been successful at canceling your escrow account with your mortgage company? I'm interested in how you went about doing it.

Thanks
Sweeps

[Ima saver]

Never had one!

[mjrube94]

I had great success with Washington Mutual. I just called them up and asked them if they would allow me to cancel. As long as you have a history of on-time payments, at least 20% equity, and a conventional mortgage, they'll allow it. (I've heard some companies charge a fee to cancel, but they didn't). They said it would take up to 4-6 weeks, but ours was done in less than 2.

Also, call up your insurance company and town/county to let them know to send the bills directly to you.

The best part of paying directly is that the loan companies are allowed to hold a certain % above the actual payments they make. You get all that back when you cancel escrow. Good luck!

[boefixepa]

It may vary on the type of loan you have. My first lone was a FHA loan and they would no allow me to cancel the escrow. When I was ready to refinance I made sure that the new loan did not include an escrow. I set up an evelope for my escrow and took the check from the old ecrow and put it in there and I put the same money I was paying every month in there too. So I know when the bills come I will have the money for them. It's nice to see me earning that little bit of interest for a change.

I wonder how much money the mortgage companies make off of escrow interest just because the average mortgage holder doesn't have the self-control to save for once a year bills? Makes you wonder huh....

[markio26]

we have never had one... i am sure it can be done, but, it depends on the type of loan that you have...