Please help me think this through.

If one has escrow (I think that's what it's called. The bank pays taxes out of the mortgage payments they receive.)
the bank does this based on what they estimate will be the Taxes on the property. Often they will over estimate and then have to re-adjust for the next year, what the payment will be.

If one is paying $100 extra towards escrow a month. The bank assumes the taxes will be $600 for the semi-annual tax bill. The bill arrives and it is only $500. Does the bank take that extra $100 and put it towards principal or does it get left in escrow where it's not helping the interest on your mortgage?

Where does that $100 get 'filed'?

No one ?!?!?!?!

Why don't you ask the bank? You are certainly paying them enough to answer all your questions...

I don't go to the bank. If I can't do it online, I do it through drive-through and the drive-thru people have no clue. I can't go when there's a teller and don't have time to go on Sunday.

Also, with all you guys know about money, I imagine someone knows the answer to this?

It usually stays in escrow. I doubt they would put it toward your principle. Some times they will give you a one time mortgage payment adjustment. Or they could adjust the regular payment to reflect the overage.

Why can't you ask them this question over the phone?

I guess I will have to. I just assumed it was a very simple question that all of the wise people on h.com would be able to answer.

Guess not.

I gave my best guess based on what I thought. It's not a standard procedure for all lenders and I have no idea who your lender is.
Thanks for the apreciative response though!

I'm sorry if my appreciation didn't come through.

Thank you for your response. I was just more hopeful of a definite answers.

Not all lenders offer escrows? Or not all lendees opt in for escrow?

most lenders require escrow. However, many of them handle overestimations in different ways as I mentioned above. No one can possibly answer your question without knowing who your lender is.