Escrow Account Information

[What Is An Escrow Analysis Statement?]
An Escrow Analysis Statement is a written notification of an increase or decrease in the customer’s monthly payment before it happens.  The statement shows the customer what is being collected and paid for escrow items, such as property insurance, flood insurance and property taxes, over the next year.
[How Does An Escrow Account Work?]
Your mortgage payment will include your regularly scheduled loan payment plus an escrow deposit. Each month when you make your mortgage payment, the escrow portion will be put into your escrow account.  When a tax or insurance bill is due, the lender will make the payment using your funds held in the account.
[What Are The Benefits Of An Escrow Account?]

An escrow account will help you better plan for the large payments that tax bills and insurance premiums impose.  Instead of having larger, lump sums due, small amounts are set aside on a monthly basis.
You will not have to keep track of when to make your tax and insurance payments.  They will be made on time by the lender on your behalf and your home will always be protected.

[How Does The Lender Get My Tax Bill?]
The lender notifies the taxing authority of the escrow arrangement and requests all future bills be sent to the lender.  You may also receive a copy of the tax bill for informational purposes.
[How Does The Lender Get My Insurance Bill?]
Prior to closing on your loan, your insurance agent should ask you for informatoin about your lender.  You will need to provide your lender's Mortgagee Clause. The Mortgagee Clause indicates the way your lender requires their name and address to appear on your insurance policy and will be the address used when insurance bills are sent.
[What Happens If The Amount For My Taxes And Insurance Change?]

The annual escrow account disclosure statement will project the amount of money that will be required in the coming year.
If there is not enough money in your escrow account to pay a bill, the lender will still make the payment.  When this happens, your escrow account may have a shortage and the lender will make arrangements with you to collect the shortage amount.
If there is money left over at the end of the year, then your account may have a surplus and the lender may refund the surplus or credit your account.


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