BOGO Monday
🏡 Mortgage Monday: Know What’s Happening With Your Escrow Account!
Did you know that under RESPA (Real Estate Settlement Procedures Act), lenders cannot keep excess money in your escrow account?
💡 If you receive an escrow refund check or notice your monthly escrow payment has decreased, don’t automatically assume everything is correct. It’s always a good idea to review your account.
✅ Verify that your property taxes and insurance payments have been made.
✅ Review your annual escrow analysis carefully.
✅ Ask questions if something doesn’t look right.
A small mistake left unnoticed for months can create bigger financial headaches later.
Knowledge is power when it comes to homeownership. Staying informed helps protect both your home and your finances.
📲 Have questions about mortgages, escrow accounts, or the homebuying process? I’m here to help.
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Handling your escrow account wisely is essential for every homeowner, and I've learned firsthand how small oversights can lead to big headaches down the road. One time, after receiving an unexpected escrow refund, I assumed everything was fine and didn’t double-check my account. Months later, I discovered that my lender hadn’t paid the school taxes for the year, which meant I suddenly owed a large amount out-of-pocket. Under RESPA, lenders are prohibited from holding excess escrow funds, but that doesn’t mean errors don’t happen. It’s crucial to stay proactive: regularly review your escrow statements and confirm that payments for property taxes and insurance actually went through. If you notice a refund check or a decrease in your escrow payment, don’t just file it away—take the time to review your annual escrow analysis thoroughly. In my experience, asking questions and communicating with your lender early can prevent long-term problems. If something looks off, call them to clarify before it becomes a financial burden. Many lenders have customer service representatives who are willing to walk you through your escrow accounts to help you understand the details. Also, keep track of important tax deadlines for your area since these impact escrow calculations. Knowledge about your escrow workings not only protects your finances but also gives you peace of mind in your homeownership journey. Staying informed helps ensure that your home investment is secure and your monthly payments remain predictable.
