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Home >> Lending >> Home Mortgage
Paying Additional Escrow
My mortgage payment only went up by $7.00 a month due to local county taxes. When I was with Countrywide they allowed me to pay an extra $100 on my next payment (added in additional escrow box), so that I could keep my same mortgage payment. Bank of America recently purchased my home loan. When I called to ask if I could do the same thing this year, they told me that I could put more in escrow, but my mortgage payment would still be the new amount. Why wouldnt they let me do this if there is a box that actually says I can pay additional escrow? They should be happy to take it because they get more of my money to use until taxes have to be paid.
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 Escrow accounts are meant to pay taxes, insurance, or other fees that must be paid relating to the property. At least annually, a review is done and if there are excess funds they must be returned to you. Allowing you to over-pay escrows creates work as the bank has to account for them, send you a check, process the check, and balance the account.
If you want to pay more than is owed, ask that it be applied to your principal debt. That will save you money, but you need to ensure that they will accept it and in what amounts. Alternatively, put it in an interest bearing account from which you can benefit.
Published on BankingQuestions.com 7/28/10
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