Updated over 5 years ago on . Most recent reply
Using Escrow Funds to Buy Points
I am refinancing two properties. My lender is asking how I want to handle funding the new escrow accounts and it got me thinking...
Does it make sense to fund the new escrow accounts by adding them to the loan, pay for points out of pocket, and then when my old escrow account closes and the money comes back to me, I use those funds to reimburse myself for buying the points out of pocket?
Yes, my loan amount is higher but it seems I end up saving more over time because of the rate buy down and I did it without spending any money out of pocket.
Am I totally missing something? I did google search and can't find any mention of this and that makes me think I am missing something that makes this a bad decision.