That's an interesting angle, and you're probably onto something with the regional differences. I've noticed lenders can be pretty quirky about escrow policies—sometimes even within the same market. Have you found that certain lenders are more flexible than others when it comes to waiving escrow? Or maybe it depends on the borrower's overall profile?
A few months back, I had a client who was dead set on waiving escrow because he wanted full control over his property taxes and insurance payments. At first, I thought it wouldn't make much difference rate-wise, but surprisingly, one lender actually offered a slightly better rate without escrow. It wasn't huge, but noticeable enough to make us pause and reconsider our options. Funny thing is, another lender we approached didn't budge at all—same rate whether escrow was waived or not.
Makes me wonder if it's tied to how lenders assess risk or liquidity in different markets. Maybe some lenders see borrowers who waive escrow as more financially disciplined or lower-risk? Or maybe it's just a policy quirk that varies from lender to lender?
Either way, you're right—digging into lender policies could definitely shed some light here. Has anyone else run into similar situations where waiving escrow impacted their refinance terms differently depending on the lender or region? Curious if this is common or just one of those random mortgage mysteries...
That's interesting, hadn't considered the lender's internal risk assessment angle before. I always assumed escrow waivers were more about borrower preference than lender incentives. A buddy of mine recently refinanced and tried waiving escrow, but the lender actually bumped his rate slightly higher—said it was due to increased risk. Maybe it's less about discipline and more about liquidity or cash flow considerations on their end... thoughts?
Yeah, that's a good point about liquidity. I remember when I refinanced one of my properties a couple years back, I asked about waiving escrow too. The lender explained that from their perspective, escrow accounts help ensure taxes and insurance get paid on time—basically protecting their collateral. Without escrow, they're relying entirely on the borrower's cash flow management, which can be unpredictable. So it makes sense they'd price in a bit more risk... even if it feels like a minor inconvenience on our end.
I get what you're saying about escrow protecting the lender, but honestly, I've always felt like escrow accounts are a bit overrated. Sure, lenders frame it as a way to ensure taxes and insurance get paid on time, but let's be real—it's also a nice little cash flow for them. They hold onto your money all year, earn interest on it, and you don't see a dime of that benefit.
A few years back, I refinanced my primary home and specifically asked about waiving escrow. The lender initially pushed back, citing the usual "risk management" spiel. But after some negotiation—and showing them I had a solid track record of timely payments—they agreed to waive it without bumping up my rate. It wasn't even that difficult; I just had to provide proof of sufficient liquidity and a history of responsible financial management.
I think lenders often assume borrowers can't handle budgeting for annual expenses like property taxes or insurance premiums. But honestly, if you're financially disciplined enough to manage your mortgage payments and other bills, setting aside money for taxes and insurance isn't exactly rocket science. Plus, personally managing those payments gives me more control over my cash flow throughout the year. I can invest or save that money elsewhere instead of letting it sit idle in an escrow account.
Of course, everyone's situation is different, and some folks might prefer the convenience of escrow. But it's definitely worth pushing back a bit if you're refinancing—especially if you have a strong financial profile. You might be surprised how flexible lenders can be when they realize you're not a risky borrower.
I had a similar experience when refinancing a couple years ago. The lender was pretty insistent about escrow at first, but when I showed them I'd been handling my own taxes and insurance for years without any hiccups, they backed off surprisingly quick. Honestly, I prefer managing it myself—feels like I'm more in control of my money. But I get why some folks might like the convenience of escrow... budgeting isn't everyone's favorite thing, after all.
