(MONEY Magazine) – Although mortgage rates are climbing, one cost of home ownership is scheduled to drop this spring--on April 24, to be exact. That's the effective date for new rules standardizing how lenders must calculate the size of the nation's 30 million escrow accounts. (Many lenders insist that homeowners set aside money in these accounts, which usually pay no interest, to cover such recurring fees as property taxes.) The changes should reduce the size of a typical new escrow account by as much as $250, according to the U.S. Department of Housing and Urban Development, which issued the guidelines. In addition, HUD estimates that 6 million homeowners will share $1.5 billion in credits or refunds over the next three years as lenders adjust existing accounts.

One new rule states that lenders must lump all escrow fees into one account. Currently, 70% of mortgage lenders use the single-item analysis method, which treats each bill as a separate subaccount and requires that money to pay it be on hand throughout the year, regardless of when the individual bill is due. Another provision limits the amount lenders can hold as a "cushion" against unexpected charges. The new guidelines mandate a maximum cushion of two months' worth of payments, thus eliminating a sly accounting move that some lenders have used to add a third month to the cushion.

The Mortgage Bankers Association says HUD's $1.5 billion refund estimate is inflated. The MBA contends that many big lenders have already adopted the new procedures. And since two-thirds of mortgages were refinanced during the past few years, many homeowners may have already received much of the benefit of the new regulations. On the other hand, according to the New York State attorney general's office, homeowners may gain far more than $1.5 billion. Here's why: Ignoring the provisions in many standard mortgage contracts that call for escrow cushions of one month or none at all, some lenders have demanded a two-month cushion. The new HUD regulations state that lenders must honor the contract language. New York State assistant attorney general Mel Goldberg estimates that nationwide this provision alone could throw off an additional $3.5 billion in credits and refunds.

Here's how to learn whether too much of your cash is being held in escrow:

Audit your account. Hire an independent firm to determine the proper size of your escrow account. Two firms that provide this service: Mortgage Monitor, in Stamford, Conn. ($149 to $299, 800-283-4887); and Loantech, in Gaithersburg, Md. ($79, 800-888-6781). Or save some money by doing it yourself. Loantech also offers a 24-page guide ($12.95) on how to inspect your account.

Check the size of your cushion. To look up how big an escrow cushion your mortgage calls for, check the lower right-hand corner of the front page of your mortgage contract. If you see the initials FNMA or FHLMC followed by a year that predates 1991, it's a no-cushion mortgage. The initials FHA or VA followed by a year predating 1990 means your loan has just a one-month cushion. If you have one of these loans and the lender is collecting a two-month cushion, request a refund. If the lender balks, contact your state attorney general.

To avoid these hassles altogether, get a mortgage with no escrow account. Only loans insured by the VA and FHA require such accounts; with all other loans, if you are borrowing less than 80% of the home's value, the lender may forgo an escrow account. But wait until the lender commits to an interest rate before asking for an escrow waiver: If you mention it earlier, the lender may nudge up the loan rate to compensate.

And if your existing mortgage has an escrow account and your outstanding balance is less than 80% of the current value of your home, you may be able to get your lender to cancel it.

- Carla Fried

HERE'S WHAT SAVERS AND FUTURE RETIREES GAVE UP WHEN THEY GOT GATT The General Agreement on Tariffs and Trade (GATT) that Congress approved last month will cost Uncle Sam $11 billion in lost tariff revenue. Tucked away in the fine print of GATT legislation are provisions allowing the Treasury Department to alter various savings bond and retirement plan rules to offset some of that loss. Here's a look at how you may be affected:

Savings bonds. Although the Treasury hasn't officially adopted the changes, an informed source says the department soon plans to start crediting interest on all new savings bonds only once every six months, instead of monthly as it does on existing bonds. While the change would not alter the effective yield, savers who don't pay close attention might lose money by redeeming their bonds just before a scheduled payout, Dan Pederson, president of Savings Bond Informer, a Detroit firm that helps individuals calculate bonds' value and interest rate (800-927-1901), cautions: "If you happen to bail out just a day before the date when interest is credited, you will have lost the interest you should have earned for those six months."

The Treasury department is also likely to get rid of the guaranteed 4% interest rate paid to anyone who holds bonds for less than five years. During the period of low rates that ended in early 1994, the relatively high 4% minimum made Series EE bonds an attractive short-term savings vehicle. But under the new Treasury proposal, savers who redeem their bonds before five years would probably receive a rate equal to 85% of the six-month Treasury yield, or less, depending on how long they held them. Contrary to some recent reports, however, the formula for determining the rate paid to savers who keep the bonds five years or more would not be changed from the current 85% of five-year Treasury securities, adjusted every six months.

401(k) plans. Another penny-pinching GATT-related move will reduce the inflation adjustments on annual contribution limits for several types of retirement plans. Formerly, for example, the cap on each employee's yearly contribution to a 401(k) plan was adjusted annually to keep pace with inflation. Now the increase will be rounded down to the nearest $500. After years when the inflation increase is less than $500, the limit will not rise at all. In 1995, for example, the limit will remain at $9,240 because inflation in '94 was around 2.6%, which would have lifted the limit by about $240 under the old rules. (If inflation rises at, say, 3% in '95, the resulting $284 adjustment would be added to the $240 figure for '94 and thus the limit would be increased by $500-$524 rounded down.) Similar rule changes will affect some Keogh plans and employer contributions to traditional pension plans. Also, inflation adjustments to the salary level used in 401(k) plans to someone who may be considered a "highly compensated" employee ($66,000 in '94) will be rounded down to the nearest $5,000. In some plans, highly compensated employees are subject to further contribution limits.

Lump-sum pension payouts. GATT also has a provision that may shrink the payout received by employees who take their pensions in a lump sum. As of this year, companies will be allowed--but not forced--to figure the value of lump-sum pension payouts using a formula based on 30-year Treasury bond yields that is less generous than the current index. "While nobody yet knows how many companies will use the new calculation, a lot of people may end up getting smaller payouts," says Rick Grafmeyer, an attorney at Ernst & Young in Washington, D.C.

- Vanessa O'Connell