homeowner escrow

[T.H.E. Owl]

As a homeowner with a mortgage in FL, I am required to pay money into into an escrow account for prepayment of taxes, insurance, etc.
Why aren't I receiving interest on this money while it sitting in escrow? Sometimes the amount in escrow is $2500 but decreases over time as money is withdrawn for the prepayments.
Who is getting all the interest?
Thank you for any reply.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by T.H.E. Owl:
As a homeowner with a mortgage in FL, I am required to pay money into into an escrow account for prepayment of taxes, insurance, etc.
Why aren't I receiving interest on this money while it sitting in escrow? Sometimes the amount in escrow is $2500 but decreases over time as money is withdrawn for the prepayments.
Who is getting all the interest?
Thank you for any reply.<HR></BLOCKQUOTE>

The lender must have required escrow to collect the money and act as a colection agency. When you signed the closing documents there must have been a letter you signed to escrow commonly called escrow instructions. You probably agreed and accepted that escrow act as collection agent to acccept funds and disburse accordlingly and all interest on monies collected go to the escrow company. Check all your docs or ask escrow to provide you copies. You should change the amount that they are collecting to a lower amount and change the interest to go to you. Another option is to delete the insurance collection and you pay the insurance company directly in semi-annual premium payments.