Waive escrows

Definition

Authorization by the lender for the borrower to pay taxes and insurance directly.

This is in contrast to the standard procedure where the lender adds a charge to the monthly mortgage payment that is deposited in an escrow account, from which the lender pays the borrower’s taxes and insurance when they are due.

On some loans lenders will not waive escrows, and on loans where waiver is permitted lenders are likely either to charge for it in the form of a small increase in points, or restrict it to borrowers making a large down payment

Related Terms

Other terms related to 'Waive escrows' starting with the letter 'W'

Wholesale lender, Workout assumption, Worst case scenario, Wrap around mortgage

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