Seasonal timing for better mortgage deals

A significantly better interest rate or lower fees becomes available.
Your current lender is unresponsive, slow, or provides poor customer service.
Your loan application is denied by your initial lender.
You find a loan product that better suits your financial needs (e.g., switching from an FHA to a Conventional loan to remove PMI).
Your loan officer leaves the company, and you lose confidence.

An escrow account, also sometimes called an “impound account,“ is a dedicated bank account set up by your mortgage servicer to hold funds for paying your property taxes and homeowners insurance premiums. A portion of your monthly mortgage payment is deposited into this account, and the servicer then pays these bills on your behalf when they are due.

Lenders typically require an escrow account to protect their financial interest in your property. By ensuring that property taxes and insurance are paid on time, the lender prevents situations like tax liens (which take priority over the mortgage) or uninsured damage from a fire or storm, both of which could jeopardize the value of the property that secures the loan.

Your Debt-to-Income (DTI) ratio is a percentage calculated by dividing your total monthly debt payments (including your potential new mortgage, car loans, student loans, and credit card minimums) by your gross monthly income. It is a critical factor for lenders because it indicates your ability to manage monthly payments and repay the loan.