How Can I Get My Mortgage Escrow Analysis Re-evaluated?

By reevaluating your mortgage escrow, your monthly mortgage payment could drop.

If you have a home loan, the odds are good that you also have a mortgage escrow service. When you pay your monthly mortgage payment, a small amount of your money doesn't pay down either your loan's principal or interest. Instead, it is held for other payments, such as your property taxes or homeowners insurance. When those bills come due, the escrow service pays them. But what if your homeowners insurance or property taxes fall? You can petition your mortgage lender to reevaluate your mortgage escrow. If you have to reserve fewer dollars each month for escrow, your mortgage payments will also drop.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• Copy of your most recent property tax bill
• Copy of your most recent homeowners insurance statement
• Copy of your most recent mortgage loan statement

1. Determine if any of the bills you pay through your mortgage escrow account might have fallen. For instance, your property taxes might be lower if your home's value has fallen. If you made changes to your homeowners insurance policy, this may have reduced the amount you pay every six months. If these bills have fallen, you might want to consider having your mortgage escrow amount reevaluated.

2. Find the proof that the bills you pay through your escrow account are now lower. This could be a copy of your latest homeowners insurance policy or your latest property tax bill.

3. Call your local county assessors office to request a copy of your property tax bill if you can't find your own copy. Call your insurance company to do the same for your homeowners insurance policy.

4. Call your mortgage lender, at the number located on your most recent mortgage loan statement, and ask to speak to a manager. Explain that you would like to have your mortgage escrow amount reevaluated. Give the reason why, too: Your property taxes have fallen or your homeowners insurance policy now costs less.

5. Send your lender by email, fax or mail copies of your most recent property tax or homeowners insurance bills to prove that your payments have dropped. Your lender will look at this to determine if your escrow payments should be lowered. Under federal low, lenders are only required to evaluate your escrow payments every 12 months. But if you ask, they may take action sooner.

References

• CashMoneyLife.com: Mortgage Escrow Payments Explained
• Consumer Warning Network: Want a Lower Mortgage Payment? Just Ask!
• Bankrate.com: Understanding Escrow Accounts