Are escrow accts. mandatory?

Question

Are escrow accts. mandatory?

Answer 1

depends on the lender and loan to value ratio.  Generally if your under 70% ltv, a lender will allow you to waive escrow, but you may take a rate hit.  Usually over 70% the lender will mandate escrow but some will go up to 80%.  Just ask what the ltv needs to be and what kind of hit you will take to waive escrows

Answer 2

This is too general a question. If someone sets up an escrow account , it may have to do with collecting real estate taxes monthly from a mortgage to be paid timely,

This would be subject to a contractual arrangement with a buyer of property and the bank or the holder of the mortgage,

Hope this is helpful