Why is my current escrow balance added to my new refi balance?Hi all,I'm mulling over a potential refi and am hoping to get some clarification on an issue regarding a higher quoted balance. Some quick background info on my existing loan: I am 3 years into a 30 yr fixed mortgage (original amt = ~250k) and have an escrow account funded by a portion of my monthly payment and utilized to cover the annual county tax and homeowners insurance premium. The refi GFE provided by the agent shows a new 30 yr mortgage w/ a lower rate, an obligation to establish a new escrow account, and a higher balance than my current unpaid principal balance (UPB). When questioned about the components of the balance increase, the agent explained that it is comprised of the current UPB, daily interest, and fees (all three aforementioned items summing up to the Payoff amount provided by my current lender, which I have verified), as well as the existing escrow balance. The escrow piece is where my confusion lies - why would the balance of my escrow account, which is essentially an asset since I have funded it from a portion of my own monthly payments, now contribute to my debt, since it has been added to my new UPB that I am obligated to pay to the lender? My understanding of the escrow process involved in a refi is that my current lender will write me a check for the contents of my escrow account. I could then use those monies to fund the new escrow account established with the new lender. I don't see how this amount would contribute to adding to the balance of the new refi loan.I would appreciate thoughts from anyone experienced with this topic. Thanks!November 12 2012 - US0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.