Homeowner JONG question

BLOOD SWEAT STEEL · 10-06-2006, 06:12 PM

I just got this check from my leinholder for $192.99 for an annual escrow account refund. There's a letter that came with it, but I don't understand WTF any of it means. Can someone simplify this for me in english, please?

**P_McPoser** · 10-06-2006, 06:29 PM

Escrow is the money being set aside from each payment to pay for insurance, PMI, taxes, etc. It is an amount estimated by the mortgage holder. You payed more into to it than you needed (ie your taxes were less than the bank thought they would be), so you got a refund basically.

BLOOD SWEAT STEEL · 10-06-2006, 06:39 PM

So - free money?

Cool.

Well, not really free. But still cool.

**benDover** · 10-06-2006, 07:55 PM

ahhh, spoken like a true ski bum. I did the same thing when mine came.
I was almost afraid to cash the check!

**cooltsi** · 10-06-2006, 09:59 PM

It's pretty common to come out ahead and sometimes short the first few years until they get it pretty balanced. I've been both ways. Sucks when they tell you their rolling the shortage on my part into next years loan and I'll pay interest on it.

**jpcski** · 10-07-2006, 05:50 PM

Originally Posted by cooltsi

Sucks when they tell you their rolling the shortage on my part into next years loan and I'll pay interest on it.

You should not be paying interest on this extra money. It is an ESCROW account which by definition is a holding account. If you are paying interest, you might want to check out whether that is even legal or not. I would be surprised if you are paying interest.