Why would my escrow account have a surplus?

If an escrow analysis reveals that the actual amount paid out in property taxes and / or property insurance is less than what was projected to be paid, the anticipated escrow balance may reflect a surplus as more than enough funds were collected. If the surplus is $50 or more and your mortgage account is current, this will be refunded to you. If your mortgage is more than 30 days past due, the surplus will be retained in your escrow account.