Escrow wavier refers to a lender's agreement that borrower may pay their own taxes, hazard insurance, mortgage insurance and other items that become due.
When a buyer borrows less than 80% of the cost of the house, he may pay a one-time fee and elect not to open an escrow account, but to pay the hazard insurance and property taxes himself.
When a loan value is 80% or less, you may elect not to open an escrow account and pay the hazard insurance and property taxes yourself.
The borrower's request to not pay taxes and insurance through impounds. Equity positions play a role in the decision.
Can be requested by the borrower, instructing the mortgage servicer to not establish an escrow account. The borrower pays annual payments for taxes and insurance directly to the billing agent for these items. Escrow waiver requests may be limited based upon the loan to value of the mortgage.
The Request for a borrower to pay their own taxes and insurance. Escrow wavers are rarely granted with less than a 25% equity position (75 LTV).
If the borrower's LTV is 80% or less, the borrower may elect to waive having the lender hold money for taxes and insurance in an escrow account. Addie Mae generally can offer escrow waivers to borrowers with loans higher than 80% LTV.
