REFINANCING
ESCROW SERVICES
Are you planning to refinance your mortgage? All real estate transactions tend to be complex, particularly so if you are changing lenders. You need help in consolidating the debt or making equity withdrawals on your property. Professional escrow services make the process quicker and easier, and that’s precisely what you get with Lightspeed Escrow.
We are real estate experts who built our escrow company with the goal of using our expertise to make refinancing as painless as possible. Our escrow agents will guide you every step of the way and help you complete the refinance process quickly, ensuring you avoid any mishaps or delays.
Expert Escrow Guidance to Keep Your Transaction on Track
A mortgage escrow account facilitates accurate and swift completion of your transactions, no matter the specifics of your mortgage refinancing. Our escrow agents will be at your disposal to advise you at every stage of the refinance escrow process, whether you're staying with your current lender or transitioning to a new one.
Staying with Your Old Lender
Even if you choose to refinance your mortgage with your original lender, the escrow account associated with your existing loan remains intact with them. Unfortunately, these funds cannot simply be transferred to the new loan. However, any property taxes and insurance payments you've made up to this point will be returned to you via check or wire transfer.
This ensures that you get your money back, but highlights that refinancing, even with the same lender, is not a straightforward process. That’s where an escrow company you can rely on steps in to assist you.
Or Switching to a New One
When refinancing with a new lender, you will need to close your old escrow account and open up a new one. This process, unsurprisingly, adds a layer of complexity. Lightspeed’s experienced escrow officers are here to take it off your hands and simplify each step, ensuring a smooth closure of your old account and seamless setup of the new one for your loan payoff.Wh
How Does Escrow Work When Refinancing?
Refinance escrow is the process of settling an existing mortgage with funds obtained from a new home loan. Homeowners often refinance to either shorten their mortgage term or reduce their monthly payments by securing lower interest rates on their insurance premiums. When refinancing a mortgage, understanding the role of escrow services can provide clarity and facilitate a smoother transaction.
Escrow acts as an impartial third-party account that holds funds, ensuring all conditions of the refinance transaction are met before completion. This helps manage mortgage payments, property taxes, insurance payments, and closing costs, providing security and peace of mind for both lenders and homeowners during the refinancing process.
With Lightspeed Escrow in your corner, you can navigate it all with confidence and focus on the benefits of your new mortgage.
Dealing with the Paperwork
Many documents are required when refinancing your mortgage - from proof of payment to settlement statements to the title reports, just to name a few. A key aspect of our refinance escrow services is ensuring that all required documents are provided by all parties on time to avoid potential delays and associated fees.
Making Sure the Refinance is Compliant with the Law
Refinance loans are governed by state and federal laws, as well as local regulations, which can change yearly. Lightspeed Escrow's agents stay up-to-date on the latest legal requirements to ensure that your refinance is compliant with all applicable laws, mortgage loan terms, and proceeds, without any issues.
Facilitating Communication
Our escrow agents will be at your disposal seven days a week to provide guidance and address any questions you may have. But to avoid any problems, the other parties in the transaction need to be informed of what’s going on, as well. We will make sure that there is no miscommunication that could cause issues and disrupt the escrow process.
Transparent & Professional Mortgage Refinance Escrow Services You Can Trust
At the end of the day, your goal is for the refinance to go through as quickly as possible, without any surprises. That’s exactly why Lightspeed Escrow exists. We handle the details so you don’t have to, from making sure that everything is done correctly, helping you with the paperwork, and guiding you through every step of the way to make the closing process as quick and smooth as possible, giving you confidence, clarity, and peace of mind from start to finish.
Frequently Asked Questions
Refinancing your mortgage is a big financial decision that raises questions, especially regarding the refinance escrow account. We’ve answered some of the most common questions to help you understand how it works.
Still unsure about something or need personalized guidance? Don’t hesitate to reach out to our team. We’re here to make your refinance quick, simple, and stress-free.
What Happens to Escrow When You Refinance? Does It Get Transferred?
When you refinance your mortgage, your existing escrow account is typically closed, and any remaining funds are returned to you. A new escrow account is then opened with your new lender to cover property taxes, homeowners insurance, and any required insurance premiums. The lender calculates your new monthly escrow payments based on updated tax and insurance amounts, ensuring your obligations are covered under the new loan.
Does Escrow Go Away After 20%?
Escrow may no longer be required once your home reaches 20% equity, but it depends on your loan-to-value ratio. The loan-to-value ratio (LTV) compares your mortgage balance to the appraised value of your property. If the loan-to-value ratio drops below 80% (meaning you have at least 20% equity) many lenders will allow you to remove your escrow account for property taxes and homeowners insurance.
However, lenders may still require escrow for certain loans, insurance policies, or local regulations, so it’s important to confirm with your lender before making changes.
How Much Does an Escrow Officer Charge?
Escrow officer fees vary depending on the complexity and size of the real estate transaction. Typically, fees are calculated as a percentage of the purchase price or as a flat rate agreed upon by the parties.
These fees cover managing the escrow account, preparing escrow instructions, coordinating with the title company, handling fund disbursement, and ensuring the closing process runs smoothly. Escrow companies such as Lightspeed Escrow offer transparent, upfront pricing with no hidden costs.
How Long Does Funding Take After Closing a Refinance?
After signing all loan documents and completing the closing process, funding usually takes 1–3 business days. The escrow officer coordinates with the lender to release funds to pay off the existing loan, update the trust account, and manage any remaining balances. The timeline can vary based on lender policies, recording offices, and any pending conditions, but the process is designed to ensure funds are disbursed securely and accurately.