When you refinance your house is it normal to get a check back from your insurance and an mortgage escrow?

Gustavo
This is not about overpayment but account changes. When you refinance a loan which has an escrow account those funds are yours. When the new loan takes effect the old loan is closed and so is the escrow account but there is usually a balance in the escrow account and those funds are returned back to you since they are yours to begin with. Kevin 866-562-6838 x 106kruorock@firstratelending.comwww.firstratelending.com

Corene
Yes it is. It just means that the new mortage company over paid the insurance company and the previous mortage company.

Robbin
Yes, it is very common. During a refinance, everything is overpaid in an effort to not underpay anything. on your closing documents you should also see a line (I forget which line, but it's on the HUD-1 closing statement) listed as "escrow pad" this is becuase it is not determined as to what date the loan is going to record with the county and interest accrues on your loan daily. Keep in mind that mortgages are paid in arrears, meaning that the interest accrues for a period of however many days, then you pay all that interest plus a portion of the principle on a fully amortized loan.It's a lot to take in, but final answer... Yes, it's normal.