Sorting through the mail yesterday afternoon I got quite nervous when I saw a piece from my mortgage company with a big red "Statement Enclosed" stamp on the outside. Mental check, "Did we pay the mortgage this month?", "Yes", "Did we pay the mortgage last month?", "Yes", "Is there some kind of fee associated with the account that I'm supposed to pay?", "Not that I'm aware of.". So, with some bit of trepidation, I opened the envelope and scanned its contents.
Woohoo! Escrow refund to the tune of $1,000! I mean, shame on them for holding so much extra of my money in escrow for the past year but woohoo unexpected cash! And, they are reducing my mortgage payment by about $78 a month to account for the lower amount needed in escrow. We will continue paying what we were before, which was greater than the amount due, but this means we'll be paying off an additional $934 a year of principal with no additional out of pocket! Score!
I'm out.
Remember Sammy Jankis!
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5 comments:
I hate to burst your bubble, but before you spend that hard earned cash, look into what your insurance premiums are for the year, and what your taxes are for the year, and make sure that the amount that it is a month is what they come up with as your escrow payment. We would get escrow refunds EVERY YEAR, at about $400 to $500. But then insurance would come due and there wasn't enough money in the escrow account and we were turned around and billed $500 for the shortfall. Mortgage companies are somewhat incompetant that way ;)
Hopefully you can really really keep it, but just be careful--from experience.
Well, the only two items paid out of my escrow are tax and insurance and the amount I'll be paying into escrow will cover the amount we paid this past year. I guess if our assessment went up (which I think it is already undervalued) or if our insurance bill increases we could have to pay extra over what they are holding.
In any event, the cash is going into savings. We have a couple months expenses put aside in savings and I'm currently saving up additional cash for a down payment to replace the red junk, er, car.
I wish I were you!! Instead, my escrow is going to be short by $1,000 so my note will go up about $200 to make up for the shortage and cover the increase!!! Sucks!!
Ouch! So sorry to hear that Michelle. I assume it was because your homeowner's insurance has increased yet again?
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