How an Escrow Waiver Could Save You Money

What is an Escrow Waiver, and how can it benefit you?

An Escrow Waiver allows you to waive the taxes and insurance payments from your monthly mortgage payment.

This means you will have a lower monthly mortgage payment, and you will also be required to bring less money at closing.

It's important to note that you DO still need to take care of paying your taxes and insurance on your own, the Escrow Waiver simply provides you the option of doing it your own way, and not including those things inside your monthly mortgage payment.

There is no fee associated with getting an Escrow Waiver. Also, it's important to note that Escrow Waivers are available on most conventional loans, but not all individuals will qualify due to FICO requirements.

Related: How to calculate your DTI

Escrow waivers are available on most, but not all, conventional loans up to 97% LTV.

Utilizing an escrow waiver eliminates the initial escrow (impound) deposit.

The minimum FICO requirement here is 620, according to one of our preferred lenders. Escrow waivers are also available on most VA loans with a 620+ FICO up to 100% LTV.

There is an option to waive just taxes, insurance, or both.

The escrow must be waived prior to funding.

There are different guidelines depending on the state you’re in, but feel free to reach out to today and we can talk about whether an Escrow Waiver would be a good option for you!

*As always, products and pricing are subject to change, and not all individuals qualify for certain programs and offerings. Certain requirements are in place, and each borrower has their own set of circumstances to be reviewed by the lender before approval. Have questions? Send me an email: holly.ecimovic@edgehomefinance.com.

Holly Ecimovic, NMLS 2396592

Licensed Loan Processor/LOA 

Edge Home Finance Corporation

Company NMLS 891464

HollyEcimovicMortgage.com