Over the weekend, we got the usual mail of catalogs, periodicals and weekly grocery inserts. On top, though, was a letter from our mortgage company that didn’t look like a bill (it was pink behind the window, not the normal bluish-gray).
I’ve come to identify whether a mailing from our mortgage company is spam or important based on the thickness and writing on the envelope, but this one caught me off guard. Once inside, I opened it up.
Inside was a check for $800 (and some change)!
Apparently we’ve been overpaying on escrow by quite a bit and the mortgage company sent us the leftovers. But then I recalled this wasn’t the first time. Last November 2nd, I wrote about getting a $284 check, and a lower mortgage payment.
So where did this money come from? Why $800? Should I be worried that they’re not collecting my tax or insurance escrow properly? Actually, I think I know what happened.
Back in June, I switched from Allstate to Erie Insurance for homeowners and auto insurance (saving a ton of money). My old homeowner’s insurance was about $900, while the new one was $650. Since I paid for a full year outside of the escrow payment when I switch insurance, I think this refund was the mortgage company’s chance to catch up in what appears to be a yearly audit.
While the last refund resulted in an $85 lower monthly payment, this one only nets me a $8 per month savings. I won’t complain, but I will make sure they’re still collecting the insurance escrow for next year’s payment!