escrow on refinancing

The impound account you have with your current lender is money you already paid and deposited... it was based on past tax bill's and insurance premiums. The new lender might impound 3 months rather than 2 months.. Your property taxes and annual insurance premium might have increased as well. But in either case, your lender should absolutely be able to explain this.. If your using a title company for closing, they too can explain the difference... WilliamAcres.com

There definitely can be a difference between your existing and proposed escrow amounts as both property taxes and homeowners insurance can and will vary from year to year. Furthermore, you may have additional insurance requirements in your escrow account if you require flood insurance, wind insurance and/or mortgage insurance. Another variable that will be certain to affect the amount needed to establish your proposed escrow account is when property taxes are due and payable. Since you are in Texas, your actual taxes might be due prior to and/or at the time of your first payment. If that is the case your title company might require to hold back 1.5 times your actual tax bill so that they can insure your closing. Continue to ask questions until you are satisfied with the answers.