HAZARD INSURANCE RESERVES
A purchase transaction requires the 1st year's premium to be paid in advance at the time of closing. You will also be required to have a 2-months reserve to be deposited into the Escrow Impound account.
For a refinance, there must be 6-months remaining on the existing hazard insurance policy. If there is less, you will be required to pay a full year's premium at the close of Escrow, plus 2-months reserve to be deposited into the Escrow Impound account.
NOTE: An escrow holder follows the insurance requirements as established by each individual lender and as escrow holder are responsible for following the lenders instructions related to insurance. We do not establish the requirements and the above is provided for use as a general guideline only.