The reason is your taxes get paid this time of year.
When we refinance your home we have to prefund your new escrow account.
Once the tax bill is paid (right about now), and up through January we are only collecting 3 months of taxes to put into your new escrow account.
After January we ad a month of taxes to your escrow prefund for every month that goes by. …so, by the time we get to October we are collecting a full years taxes to put into your new escrow account. If you are rolling 12 or 13 months of taxes into your new loan then that ads alot to the balance, and people don’t like that.
…but if we are only rolling in 3 months of taxes to your new escrow account we can refinance your loan, and still keep the new balance lower.
So, if you were considering refinancing – do it now because we can keep your new balance lower. …and, it doesn’t hurt that rates are at an all time low!
Brett
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