Comments on: Does a Mortgage Escrow Account Pay Interest?

By: Dan

Dan — Sat, 07 Apr 2012 20:10:25 +0000

PA is considering doing away with school property tax all together .

By: yvonne

yvonne — Wed, 13 Oct 2010 19:58:31 +0000

Well this is a surprise. We hold an account with Arundel Federal Savings Bank in Maryland and have never received any interest. When I asked the bank, they told me that they don’t have to pay interest. Please clarify.

By: TFB

TFB — Fri, 19 Mar 2010 16:55:55 +0000

Scuba MN – In my escrow account, the interest is credited to the escrow account every month and stays there. It will be used for tax and insurance together with the extra amount I pay into it every month. The interest is not paid out. The little bit of interest very likely will be eaten up by the increase in tax and insurance.

By: Scuba MN

Scuba MN — Fri, 19 Mar 2010 16:01:15 +0000

Just wondering how the interest payment is made to the consumer? I have asked my mortgage company about it and they said they have too and I am coming up to my 1st anniversary so I am curious how I will receive that money.

By: Hasan

Hasan — Wed, 17 Feb 2010 18:38:33 +0000

Thanks for the suggestion. I have contacted them about this. It seems though that the state law forces the financing company to pay interest to the home owner, even if he does not want to ‘earn’ the interest. Do you know of a process through which one might ask the government to allow the home owner to not have the escrow in a non-interest-bearing account?

By: TFB

TFB — Wed, 17 Feb 2010 17:34:43 +0000

Hasan – I’m sorry I don’t have an answer for you. You will have to ask the financing company if it requires escrow and how not to receive interest.

By: Hasan

Hasan — Fri, 12 Feb 2010 05:29:00 +0000

I have a house in Maryland on a increasing-ownership contract with a financing company aimed at not dealing with interest because of religious reasons (in Islam, usury is a major sin). I am concerned about receiving interest on the escrow. Is there a way for me to not receive the interest, either by having the escrow stored in a non interest bearing account or by not having escrow at all?