What happens if my mortgage company overpays my taxes?
By Bob Millaway, South Jersey Community Expert & REALTOR®
If your mortgage lender overestimates your property taxes and collects too much in your escrow account, the excess creates a surplus. Your lender is required to refund the overage to you once the account is reviewed, typically annually. You will receive either a check or an escrow refund applied to your account. The lender will also recalculate your monthly escrow payment going forward.
Why It Matters
An escrow overpayment means you have been making higher monthly payments than necessary. The refund puts that money back in your pocket.
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