What happens to the extra money in Escrow Account?
Think of Escrow Account as a savings account. Any extra money, more than the minimum required amount, is refunded to you on a yearly basis. How often the payment is made to Escrow Account? Your monthly payment includes Principle (P), Interest (I), Tax (T), Insurance (I) and PMI if any. Is Escrow Account a fixed amount? Escrow is fixed for a year, but changes yearly as taxes and insurance amount changes.
