Riverton, New Jersey
1 comment

Not to back them but most people on here that are writing reviews have the same problem, taxes and insurance (escrows). There are things that people do not know or don't care to listen to during the mortgage process.

One thing is having and escrow account. Most people let the mortgage company deal with it because they don't want to. Well then if you do that ASK QUESTION ON HOW IT WORKS!! First if you have an LTV (loan to value) of 80% or less you can pay on your own and opt out of an escrow account but remember YOUR responsible to pay and if you don't your braking the terms of your mortgage by not paying.

If you don't pay then the lender will pay them and set up an escrow account and there is nothing you can do about it. Now if you set up an escrow account you need to understand a few things. Lenders pay the taxes based on the state THEY are in not where you live. If your home is in Florida and your lender is in Calif then they are paid on when Calif taxes are paid.

It has always been that way. Also if you have a new construction property the taxes paid at closing are based off of the taxes of the land only because when they were assessed there was not a house on it. So in a year be prepared for your taxes to go up. Now all lenders add to the escrow account to prepare for this however they cant prepare for something not known yet.

So when the tax bill comes out and your new home is assessed be prepared. And as far as homeowners insurance that will increase every year along with your taxes. Lenders have no control of this. So if your going to be mad with someone blame your tax increase on the county and state not the lender and if you have a problem with your insurance going up blame your insurance company.

Call them to see if they can do something about your policy. if there are discounts. If not they shop around but make sure you let your lender know your doing this and the agent will send a new policy to the lender. Best thing i can say is to ask questions to your loan officer at the time of application or your processor during the process.

When you close on your home review the escrows with the title clerk or attorney you have hired and they will explain them. Otherwise it's your fault for not listening not the lender.

And read everything when you apply for a mortgage and when you close.

Product or Service Mentioned: Cenlar Mortgage.

Reason of review: Good customer service.

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Anonymous
Pompano Beach, Florida, United States #1282652

Hi, I have one question, can I cancel my escrow account with Cenlar? my closing paper said yes, but what about tha LTV? I bought this house for 175000, now the property value is 280000, is there a way to cancel the PMI and pay taxes and insurance by my own?

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