[CNCRaymond]

This is a good question. I came acrossed it while reading New Posts. It stunned me. I had never before wondered where my money was going, and now, I can't help but wonder. Please read.

I was wondering if perhaps you could tell me something. Recently my house payment was increased in order to keep pace with my Escrow Account needs. Evidently my Property Tax increased, thus the need for more money in my Escrow account increased. My question is a simple one, and one that no mortgage company will answer, or at least the ones that I have called.

Who keeps the interest earned off of these Escrow Accounts? You have literally millions of Escrow Accounts with anywhere from $1,000 to $10,000 dollars in them, all earning interest. The money in these Escrow accounts belongs to the people who put it there, however, the Bank appear to be keeping this money for them selves.

Would it not be an interesting story to find out where this money is going? I mean I could surely use the interest off of my Escrow Account to pay down my principle on my mortgage.

In some cases these mortgage companies will "over estimate" your Escrow Account needs, and draw in extra cash for a very long period of time. Then eventually they will send you letter telling you that you over paid, and a refund of X amount is being sent back to you. Where did the interest on the X amount go? I mean if your late making a house payment, they charge you X amount in late fees to cover X amount in interest, so why not pay you X amount in interest on the money they held? Simple answer: They want to keep the money for themselves. Its free money to them, and they love free money. However, it really is not free for us because we are the ones paying it.

Where does the interest money on my Escrow Account go?

Thank you for your time.

Where does the interest, if accumulated, go?