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Real Estate Home Mortgages/Reserve requirement on mortgages


My mortgage loan recently was transferred from BOA to Nationstar and I noticed my payment went up because they added a reserve requirement payment to my loan even though I have never had a negative escrow balance in 9 years. My insurance payment went down because I got another company with lower rates and my taxes went up only 5$. I have $113.00 in excess in my escrow. Is it still appropriate practice to add a $40 a month reserve requirement payment? And if this reserve requirement payment continues to build an excess amount that is not used will I get it back or does the company keep it?

Very normal for the bank to keep 2 months of taxes and insurance in reserves.
A one time payment into your escrow account would be an option to get you caught up.... That is what i do when my taxes go up..... So my payment  doesn't rise too much.
It is your money.... If they determine that they have too much in the account during the annual audit, they will issue a refund check to bring it down to legal limits.
When you sell... You get the escrow reserves back.  
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

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Tom Burris


I can answer any question regarding Mortgage loans for Purchase or Refinance. I currently work as a Mortgage Banker in Dallas, TX and have experience as a Mortgage Broker. The favorite part of my job is helping First Time Home Buyers. I also consider myself an expert of Credit and Credit Qualifying for a home loan. Many of my loans are the result of showing clients how to credit qualify for a loan after they were denied in the past. We do FHA, VA & Conventional Financing. I have extensive experience in Investor Loans as well. I will NOT answer questions about 'getting around guidelines', ect. Or if I sense that you are trying to call your 'investment' property a primary residence, I will reject the question. I will ALWAYS err on the side of caution if I sense that the question is fraudulent in nature.


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