What is an escrow analysis?
We perform an analysis of your escrow account each year to make sure there are enough funds to cover your private mortgage insurance, homeowner’s hazard insurance and/or property taxes.
This escrow analysis will show you the amount of taxes and insurance paid from your escrow account on your behalf in the past year. It also highlights your expected insurance and tax payments for next year and indicates whether we expect that the account will have excess funds (an escrow overage) or insufficient funds (an escrow shortage) for the next year.
- Escrow overages of less than $50.00 will be prorated, and your monthly payment will be adjusted accordingly. A surplus of $50.00 or more will be refunded. A surplus is determined based on the projected balance for the next 12 months.
- Escrow shortages typically occur if your property taxes and/or insurance premiums increase. The shortage amount is divided into 12 months and added to your monthly mortgage payment. Alternatively, you can choose to pay the shortage in full. A two-month escrow cushion is also required.
Your Annual Escrow Account Disclosure statement will be sent at least 30 days before any payment changes are required.