can you lower your mortgage (without refinancing) by having excess in escrow once taxes and insurance are paid?

by **Daisymae** on Fri Oct 23, 2009 9:23 pm

My statement came in stating that I am under $15.00 in escrow for taxes to be paid in December. My mortgage payment went up by $3.00. Now while this is small, I was wondering if I had a surplus in escrow would the mortgage payment be adjusted to show that I pay less the following year because of the surplus?

by **BillyShat052** on Fri Oct 23, 2009 9:32 pm

No. Your escrow balance can only grow to a certain amount over what they project your expenses are for the year. The remainder will be refunded.

by **JF080** on Fri Oct 23, 2009 9:33 pm

I had a massive overpayment in my escrow one year and the mortgage payment was adjusted to reflect a proper collection of the escrow amount for the duration of one year. The excess collected that year was returned by a check.

by **reenzz338** on Fri Oct 23, 2009 9:34 pm

No. Escrow can not be mingled with the mortgage payment. If you have an "excess", the mortgage company is required to return it to you at the end of the mortgage year.

by **jlf799** on Fri Oct 23, 2009 9:51 pm

Yes, it would. It doesn't "lower your mortgage" - just your monthly payment because less has to go into the excrow account.

can you lower your mortgage (without refinancing) by having excess in escrow once taxes and insurance are paid?