Refinancing mortgage loans from September through November seems to be more expensivein Florida.  The truth is your closing costs should remain low; however, the costs for your new escrow account is climbing as we near the end of the year.  Most Florida homeowners enjoy the convenience of escrowing for property taxes and homeowners insurances.  Their mortgage lender pays them, when due, on behalf of the home owner.  Since Florida property taxes are typically paid at the end of November; your escrow account balance should have enough accrued to pay the tax bill.

As we near the month of November, the amount collected for property taxes increases so there is enough start up funds in the account to pay the annual premium.  For mortgage loan refinances closing this month; we are collecting 13 months worth of property taxes on our Good Faith Estimates.  This allows enough to the annual, 12 month, premium and have 2 months remaining in reserves.

 One option many of our clients learn is the opportunity to roll in only the closing costs.  They choose to pay the new escrow account start up costs and simply replenish their savings when their current escrow account balance is refunded to them.  This usually takes place within 30 days from the pay-off of their original mortgage.

If you have any questions regarding your escrow account balance or refinance options; please contact one of our mortgage professionals.

Stephen Thaggard

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