HLS wrote:Flu, The interest

[Coronita]

[quote=HLS]Flu,
The interest rate on your note is your interest rate.
I don’t think that you have a 1.18% rate.

Where did you see that a servicer must pay you 2% ? Interest is required to be paid in 15 states,
(Including CA) but I’m not aware of a minimum %.

I doubt that any servicer would allow that type of money to sit in an impound acct very long.
They would most likely return it to you.[/quote]

1. If I have $77k left on principal, and $2750 total interest to pay during those 3 years, then isn’t

77000*(1+r)^(3)=$79750

or r= (79750/77000)^(1/3) – 1 or 0.0118?

Please correct me if this isn’t right.

2. It’s 2% for CA escrow accounts

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwjxlunOpa3JAhVIMogKHVN5BvkQFggmMAE&url=http%3A%2F%2Fwww.city-data.com%2Fforum%2Fattachments%2Fmortgages%2F60986d1270780876-bofa-bank-america-203k-rehab-loans-interest-requirments-state-2-state.pdf&usg=AFQjCNFv03qcBFyS0xCQrtZpNqYSBlTcbQ&sig2=KHyNs3ZjBcomEsJnz4Y9pA

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Unfortunately, someone already thought of this…
Hence:
http://www.bankrate.com/finance/mortgages/mortgage-escrow-account-investing.aspx

“The Real Estate Settlement Procedures Act, or RESPA, limits the amount of cushion in an escrow account to a maximum of one-sixth of the total escrow charges for a year, and that’s at the lender’s discretion.”