Posted by Dave T on April 11, 2005 at 15:25:37:
Thanks Michael.
I did ask the lender whether my rate would be any different with escrows. I was told that since I am getting a shelf loan, there is no rate differential with escrows.
Since the rate was not going to be affected either way, I opted out of escrow.
Tax Service Fee? - Posted by Dave T
Posted by Dave T on April 11, 2005 at 10:09:22:
I got a statement of estimated closing costs from a lender. I applied for a (portfolio) 60% LTV loan from a local regional bank and asked them to waive escrows for property taxes and hazard insurance. They agreed to the waiver, but the estimate still shows a Tax Service Fee.
It is only $81, but I am just wondering why I would be charged this fee when the loan servicer is not paying the property taxes.
Anyone know what I am getting for this fee in this situation?
Re: Tax Service Fee? - Posted by dealmaker
Posted by dealmaker on April 11, 2005 at 20:33:01:
Sometimes they hire a tax service (brother in law deal) to confirm 1) that taxes are current (2) amount of taxes for credit at closing.
Ask them what it’s for.
dealmaker
Re: Tax Service Fee? - Posted by Michael
Posted by Michael on April 11, 2005 at 11:09:40:
Hi, Some lenders will charge that fee anyway because they need to fill out the property tax/escrow forms whether they check YES for escrow or NO for no escrow… Keep in mind your interest rate is 1/4 point higher because you chose not to escrow… 1/4 point is the no-escrow penalty… Just an FYI…