Cash out positive escrow balances

Question

I bought a house about 2 years ago. The bank estimated my tax and insurance payments above what was actually paid out. Now i have a more than a few hundred dollars positive in my escrow balance, and it will keep going up, every year. So am i able to cash out the positive balance? Or is it just money that i cannot/should not touch. I don't mind paying a little extra to keep a positive balance. I would just like to maybe pull some of that positive out, like as if it were a type of savings account. So can anyone help me?

Answer 1

By law your escrow account must be analyzed every year.  The mortgage company is allowed to keep only 2 months reserves in the account.  You will be getting a check back if this criteria is met.  

Answer 2

Property taxes tend to go up eventually, so they usually like to maintain some reserve amount (like $500 more than your taxes).  If there is excess surplus, they may send you a check at the end of the year or just adjust your monthly escrow payment.

I got out of escrow altogether when I refi'd.  Although, they did give me an interest checking account to auto-pay my loan that I am supposed to pay tax/insurance from, so they can keep tabs on it.

Answer 3

Every year, your mortgage company should send you a check for the excess in your escrow account or send you a bill for what is owed. I would call your mortgage company.