Mortgage Escrow Surplus! ...and reminders!

I got notification that I have a mortgage escrow surplus from last year. I will get getting almost $800 back from Chase which I will in turn throw against debts immediately. This is a nice surprise and a great boost for my net worth. I also like getting unexpected checks in the mail!

This brings me to the point that it is important to read your annual escrow statement from your mortgage lender. It can go the other way where you might have to actually send them more money. I always check the accuracy of their calculations and the actual numbers they use. Does the property tax, insurance, and other escrow items match what you have? These people do thousands of these a month and mistakes do happen!

If you do find any mistakes you need to bring it to their attention immediately as underpaying over 1 year's time could lead to having to cut a big check the next year. Also if you personally receive bills that are covered by escrow funds be sure to send them onto your lender so they get paid on time. Most of them have a mailing address and/or fax number to send them too. A little paperwork now saves a big headache later!