It's that time of year again when I get the escrow account letter. Last year I actually got an overage check. No such luck this year. I must pay $97 or else my mortgage payment will go up $8 a month. I do have $140 in credit card rewards sitting in my account. I was going to use it towards the final mortgage payoff if nothing else came up.
The escrow account was one thing that surprised me about my first mortgage. I didn't know that the amount would change and that the bank would demand money (or sometimes give it back) or raise my monthly payment every year. I paid the amount and still my payment went up just not as much as if I hadn't paid. My mortgage payment started out in the $600's and is going to end in the $800's. That is a big difference and I am glad I was able to cover it.
Since I am (hopefully) going to pay off this mortgage in 6 months more or less, I think it would be ok to just let it go this time. After I pay off the mortgage the extra money in the escrow account will come back to me anyway. No need to pre-pay. I think $8 a month is the way to go.