The Connecticut Department of Banking has released their Minimum Interest Rate Lenders will be required to pay Borrowers on funds held in Mortgage Escrow Accounts from January 1, 2014 through December 31, 2014. The Minimum Interest Rate For Funds Held In Mortgage Escrow Accounts For 2014 in Connecticut will be .09%.
Connecticut Interest Rates On Escrow Accounts.
Lenders are required to pay interest on funds held in all Borrowers Escrow Accounts. Most Lenders require fund for Taxes and Homeowner's Insurance be collected each month as part of a Borrower's Monthly Mortgage Payment, and held in escrow unless the Borrower has made a downpayment of 20% or more at the time they acquired their mortgage. FHA requires fund for Taxes and Homeowner's Insurance be collected each month as part of a Borrower's Monthly Mortgage Payment, and held in escrow regardless of the amount of downpayment on the mortgage.
Funds collected into a Borrower's Escrow account can only be used by Lenders to pay Taxes, and Homeowners Insurance when they become due, and cannot be used for any other purpose. Lenders are further required to pay interest on each Borrower's Escrow Account as established annually by each State's Banking Commission.
In Connecticut the 2014 Minimum Interest Rate for funds held in Mortgage Escrow Accounts is much lower than those established by CT State Statues prior to 2011. Prior to 2011 CT State Statures "provided that the established minimum interest rate would be no less than 1.5% regardless of prevailing interest rates." However, the State General Assembly removed the 1.5% minimum interest paid on Mortgage Escrow Accounts during the 2012 Fall Legislative Session, and replaced the Statutory Minimum with Prevailing Interest Rates.
In order to find out what the Minimum Interest Rate For Funds Held In Mortgage Escrow Accounts For 2014 is for each state, Borrowers should go to their State Banking Commission website to see what the established interest rate will be for 2014.
******************************************************************************
Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
my bad...
Comments(9)