Question by Tatyanna N: Do I have to use escrow when refinancing my mortgage?
I am refinancing and my loan officer says that I have to pay $ 2000 for using escrow. Is there a way around it? I thought that escrow was unnecessary when refinancing. Isn’t it needed only when purchasing or selling real estate property?
Answer by Ellen J
I’m no expert but it’s my understanding that escrow is the account that the lender draws from when they pay the tax bill and the home insurance bill. If you don’t put money in an escrow account then you’d better be prepared to pay these bills yourself because, if you don’t, you will surely lose your house.
Add your own answer in the comments!