Dammit.. A huge chunk of my mortgage is for escrow.

[Qacer]

My property tax last year was $1800. I got a refund of about $2500. I figured my escrow payments would go down this year, but I was just checking my statement, and a good chunk of my payment (~$360) goes to escrow. For a year, that's $4320. If my taxes are only $1800 , and they have been that much for the past two years, then I'm feeling gypped that I'm lending the mortgage company more than $2000 a year and not getting any interest on it.

I'm not sure about escrow laws, but do I have any options in terms of lowering it down? I'd like to get rid of escrow payments, but I think my mortgage requires it.

 

[ultimatebob]

You should get interest on your escrow account... I do, anyway.

I really wouldn't worry about it... your escrow payment should be reviewed twice a year, and get adjusted if you have more than enough money to make your property tax payments.

 

[Zorro]

Does your escrow also cover your Homeowners insurance ?

 

[IronWing]

Are you counting everything that gets paid out of escrow (PMI?, hazard insurance?)? If nothing else is paid out of escrow, yeah, sounds like you are getting ripped.

 

[Capt Caveman]

If you got refunded $2500, the monthly escrow payment should have adjusted to reflect that you have been overpaying going forward.

 

[olds]

If you got refunded $2500, the monthly escrow payment should have adjusted to reflect that you have been overpaying going forward.

This

 

[Qacer]

Are you counting everything that gets paid out of escrow (PMI?, hazard insurance?)? If nothing else is paid out of escrow, yeah, sounds like you are getting ripped.

You are right.. I really should slow down with my reading of statements. The escrow payments including PMI and hazard insurance, so all is good now.

So I don't really have anything to rant about. After I pay off my car and student loan, then I'll start putting extra money so I can drop my mortgage down to a level where I can petition to get PMI taken out. I pay about $100 / month for PMI. Tsk. That could have been an Internet plan and an Android phone.

 

[Drekce]

This is why I got a loan with no escrow when I refi'd. I had to fight with them to get it though.

 

[ebaycj]

My property tax last year was $1800. I got a refund of about $2500. I figured my escrow payments would go down this year, but I was just checking my statement, and a good chunk of my payment (~$360) goes to escrow. For a year, that's $4320. If my taxes are only $1800 , and they have been that much for the past two years, then I'm feeling gypped that I'm lending the mortgage company more than $2000 a year and not getting any interest on it.

I'm not sure about escrow laws, but do I have any options in terms of lowering it down? I'd like to get rid of escrow payments, but I think my mortgage requires it.

Are you sure your property taxes arent twice that (TWO payments of $1800)?

Then it would make sense. 2x1800 for taxes + 600 for insurance + 200 profit for escrowing your payments, would get you around $4320.