Me neither... sounds like your loan officer is confused, or really poor at communication, or both.

Both, I think. She's been really bad at answering the few questions I've had.

The new lender is not giving you a credit relating to your old escrow account. They may be applying a credit from a rebate due to a premium interest rate (the most likely source,) or due to prepaid per diem interest charges you are making for closing mid-month (although that would be an accounting fallacy as the actual credit would come from the prior lender refuding the partial period you had prepaid on your previous monthly mortgage payment.)

This would make more sense. The line item that my loan officer said was from my existing escrow account balance is actually labeled "Lender Credit towards Closing Costs". That didn't sound like the balance of my escrow account to me.

After about 3-4 weeks after you close & fund, the prior servicing company will send you a check reflecting the remaining balance of your old escrow account.

Is the closing agent who's coming to sign the documents going to know the answer to this? Will they know what the current escrow account balance is?

Thanks,

Wot