Tax Payments & Escrow Analysis
When we bought our townhome, the previous owner used it as a rental. We applied for homestead exemption and got our taxes cut by half. Very exciting! The mortgage company is saying they won’t do an escrow analysis to correct our payments until next April. So…
When we bought our townhome, the previous owner used it as a rental. We applied for homestead exemption and got our taxes cut by half. Very exciting! The mortgage company is saying they won’t do an escrow analysis to correct our payments until next April. So we are stuck paying double for an entire year? Doesn’t seem right. I know they would refund it but we have better things to do with cash. I provided our official 2026 tax breakdown from the county so it’s not a guess. Is there anything I can do? Is it possible to just waive this whole escrow thing entirely? I am more than capable of paying a tax bill. I would rather just handle it myself.
Collected discussion
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You can't change the lender's process. They collect escrows. They pay out the tax and insurance bills. They audit the accounts on their own time frame. When they deem there is too much money held in your account, they will send a refund and alter your payments.
If you're over paid you'll get some money back
Unfortunately no. I have tried. You are at their mercy. I hope you get a refund.
You're not actually stuck waiting until April. Servicers are only required to run an escrow analysis annually, but most will do an out-of-cycle reanalysis if you ask for one in writing, especially when you're handing them something concrete like an official county tax document showing the new assessed amount post-homestead-exemption. You actually can request an escrow analysis once per year. I've done it. A phone call to a general customer service line often won't get you anywhere because reps there usually can't trigger it, but submitting a written request through the servicer's document upload portal or by mail, with the county tax breakdown attached, and asking specifically for an early escrow account review, tends to get taken more seriously. Or call and ask to be transferred to the escrow dept. On waiving escrow entirely: that will be lender dependent but ask when you call. It also will depend on the loan program you have. Worst case if they drag their feet, you're still getting that overage back as a refund once they do reanalyze, it's just a timing annoyance rather than money actually lost. I'm a mortgage broker, hope this helps.
Be a squeaky wheel. I was able to get an off cycle analysis by complaining. Loudly. If you have an FHA loan, you cannot waive escrow (unsure about other federal loan types). Many services require 20% equity to waive. Some charge a fee to waive. Just, ask your lender.