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CLEAR Temp: 78 °F Wind: ESE at 3 mph Friday, August 1, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend July 24, 2003 Since You Asked Shop around for the right lender I’m looking into refinancing our home mortgage, and I’ve just been told that lenders now charge you an escrow fee of more than $300 if you don’t let them pay your real estate taxes and home insurance premiums. Is this legal? Seems like extortion to me. — Vicki B., Eagle Point Well Vicki, the sticker shock of doing business with lenders and title companies is a function of rising property values. Let’s say you could find a $150,000 house — a rare find in Jackson County these days — and put down $28,500; your mortgage would be more than 80 percent of the value of the house (81 percent). Any time a loan covers more than 80 percent of the value of the property, you would be subject to a quarter-percent waiver fee bump. That’s mandatory on Fannie Mae and Freddie Mac loans. In our example, the charge would be $303.75. Advertisement Lenders are sometimes able to absorb that fee based on the cost of money — which varies day to day — to the lenders. The best bet is to shop around for the right lender. Send questions to "Since You Asked," Mail Tribune Newsroom, P.O. Box 1108, Medford, OR 97501; by fax to 541-776-4376; or by e-mail to [email protected] . We’re sorry, but the volume of questions received prevents us from answering all of them. Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback A D V E R T I S E R S SPECIAL SECTIONS Rogue Valley Auto Finder Rogue Valley Job Finder --> Rogue Valley Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times