Your Money May Be Hiding

Submitted by mega on Thu, 01/24/2008 - 01:27

Hi All,

I just joined today and was reading a thread here about PMI insurance and at what point one could cancel this. As best I understand it, under 80% LTV then PMI is no longer required as most of the answers stated.

What I wanted to remind everyone is that an often time overlooked area by homeowners is their escrow account. When you make your payment especially if it is PITI, then any overage goes into your escrow account. Many home owners actually forget about this as their taxes may drop or other developments happen that can cause a continue excess build up in escrow. You can get any excess sent to you by simply checking it once in awhile. To the best of my knowledge this is not automatically sent to you, it is something you personally have to check on.

Posted: 24 Jan 2008 06:19 Post Subject: a bit more please..

To the best of my knowledge this is not automatically sent to you, it is something you personally have to check on.


How often do we check it? And what are the procedures to follow up! BarbieG

Posted: 24 Jan 2008 06:41 Post Subject: Am I correct!

my friend,

When you make your payment especially if it is PITI, then any overage goes into your escrow account. Many home owners actually forget about this as their taxes may drop or other developments happen that can cause a continue excess build up in escrow.



I've heard that the build up generally takes place till the payment of the property taxes & the renewal of the insurance premium. This is the time when the lender pays the amount to the carrier. Hence the expenses are paid out of the escrow account & a new cycle begins for the coming year. Am I correct! Talahussiecrow

Posted: 24 Jan 2008 06:54 Post Subject:

Yes, its good that you have mentioned about the PITI (Principle, Interest, Taxes and Insurance) payment over here. One thing is there for sure- being the homeowner you won't ever need to worry neither about yearly budget of the Property Tax liability nor about the insurance premium revisions. This in turn would also help lessen the mortgage company's worries associated with its property taxes due.
~stableinsured~

Posted: 24 Jan 2008 10:03 Post Subject: Hi BarbieG

How often do we check it? And what are the procedures to follow up! BarbieG



Your escrow account is most usually handled and managed by the lender. Simply call them and ask about your escrow account for any overage. They can tell you in a few minutes. Here is a good link to help anyone understand more about their escrow accounts, how they came to be ect:

Link removed

Posted: 24 Jan 2008 10:28 Post Subject:

Great post Mega, my escrow seems to need more money each year! ha ha...I think I did get an excess check ONCE in 20 plus years! ha ha...I thought it was an automatic thing though, that after the yearly review of the escrow then adjusting of the mortgage payment up or down. Good to know, that checking may provide some extra cash!

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