Unexpected check in the mail. regarding Escrow refund.

[PlatinumGold]

so, it's my birthday this morning and my wife brings me a form letter from our mortgage company, it says we had excess escrow funds and they sent us a check for about $1200.00

nice surprise.

 

[spacejamz]

If your property tax bill (or hazard insurance premium) decreased signficantly since last year's bill, then you should be fine...

is your mortgage for a new home? if your last tax bill was based on the value of the land only (and doesnt include the value of the house), it will screw up your escrow analysis and cause them to cut you an escrow overage check. Then when you pay your taxes next year, your escrow account will be short and then your mortgage company will make you back the shortage.

If you are not sure, call your mortgage company and have them explain the reason why they cut the check...

 

[EagleKeeper]

If the check is legit - apply it directly to the principle - perfect chance to get well ahead of the interest game.

 

[Brainonska511]

Originally posted by: EagleKeeper
If the check is legit - apply it directly to the principle - perfect chance to get well ahead of the interest game.

Cue argument about the value of investing extra money vs. applying it towards principle.

 

[BoomerD]

Either way, it's a nice bit of "bonus cash"...We got one when we bought our house, and again when we refinanced to take advantage of the lower interest rates. Didn't apply it to the principle, OR invest it...except to invest it in our bills and other daily life stuff.