Why do I have an escrow surplus?
The most common reason for an escrow surplus is a decrease in the cost of your property tax or homeowner’s insurance. A surplus can also occur if too much was collected for escrow last year or at the loan closing. It is possible to have a surplus even if tax and insurance amounts have increased over the past year. When this occurs, we may increase the monthly escrow payment to ensure there are enough funds to pay the higher costs when due.