Question about escrow: I just received a check for surplus...?

Question

which is great but does this mean I may owe more later? (Sorry, I'm really ignorant with all this). Also, my mortgage payment went down about $49. Is this a permanent thing for the next year? I have GMAC Mortgage if that makes any difference. Thanks!

I pay escrow with my mortgage.

Answer 1

Same thing happened to me. It stayed the
same for about 3 years but then went up about 10 dollars. I got almost $400. It was like winning the lottery w/o playing.

Answer 2

If you have a fixed rate mortgage, you're P&I (principal and interest payment) won't change. However, your hazard insurance and property taxes change from year to year. It sounds like taxes and/or insurance went down, so you had 'too much' in escrow. Your payment went down because the amount just paid from your escrow account was less than the previous year. They take 1/12th of the tax /insurance payment and add it to your P&I for the monthly payment. That builds up until it renews again next year and either it will go up, stay the same or be less. You should shop around to get the best hazard insurance quotes. Apply for homestead exemption (ask your local property tax office or appraisal district) to see if you can lower your property tax.

Answer 3

Yes, talk to the escrow company. If you had a surplus before, good chances are there is still a surplus in your account because you didn't cash the check. Keep the check and offer to mail it back to them, if needed, but they should be able to just send you a new check now since the last one they sent is past the void date. Jared

Answer 4

Actual payments include taxes and insurance which vary .
You should be monitoring ALL segments of your mortgage and know what is happening .

Check on your taxes and insurance .

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