Question : What is included in finding the escrow amount for our house mortgage?
Our total house taxes and house insurance for the year went down $ 109.60*, so why is our escrow amount increasing $ 43.66 each month (total for year is $ 530.93)? (*Decrease was due to switching insurance companies–we got more coverage for less!) Our mortgage company is not giving us a reason for the increase??
house mortgage

Best answer:

Answer by angela
Did they send you anything with totals for last year? It could be that they didn’t hold out enough last year and are making up the difference. It might also take until the next time they change your payment for the new insurance rates to be entered in their payment formula. They are only allowed to have a certain amount in escrow so if it turns out they have too much because of the lower insurance rate then they should send you a check when they reach that point. As far as I know, they only update payment amounts once a year so you’ll probably have to wait until the next time they update to see a lower house payment.