This is money we have to collect when setting up an escrow account for you based on when your property taxes and homeowners insurance are due.

For example, if your taxes are due in 7 months and you’ve only made 5 payments, we’ll be short for the amount due for the annual taxes. So we collect enough upfront to make sure we have the required funds to pay your taxes on time.

If you’re doing a refi and you have an escrow account with your current lender, you’ll be refunded that amount after we pay off your mortgage. If you get an escrow refund from your current lender, that money’s all yours to do what your little heart desires with.
Was this article helpful?
Cancel
Thank you!