When is escrow overage returned to borrower?

Escrow overage is typically returned to the borrower when the escrow account has a surplus after all property taxes and insurance premiums have been paid. This usually occurs at the end of the escrow analysis period, which is often annually. The lender will review the account and, if there is an excess amount, issue a refund to the borrower, usually within a few weeks of the analysis. It's important for borrowers to check their lender's specific policies regarding escrow overages, as procedures can vary.