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system
escrow removal fee?
user
consider that the bank of course makes money on the money in your escrow. it is nothing but a free loan you give the bank, and the official reasons why they want it are mostly bs - they want your free loan, nothing else. as a consequence, to let you out of it, they want the money they now cannot make on your money upfront, in form of a 'fee'. that explains the amount; it is right their expected loss by letting you out. unfortunately, knowing this doesn't change your options. either way, you will have to pay that money; either as a one-time fee, or as a continuing loss of interest. as others mentioned, you cannot calculate with 29 years, as chances are the mortgage will end earlier - by refinancing or sale. then you are back to square one with another mandatory escrow; so paying the fee is probably not a good idea. if you are an interesting borrower for other banks, you might be able to refinance with no escrow; you can always try to negotiate this and make it a part of the contract. if they want your business, they might agree to that.
assistant