Blog

Escrow Analysis

Expect an escrow analysis once per year, mailed to you. Please be sure to read it to understand how your mortgage payment is changing. The escrow analysis looks back at property tax and insurance costs incurred over the last year.  It’ll recalculate what should be your monthly payment to your escrow based on that.  Escrow analyses and changes to your payments always look at the past, rather than predicting the future.

If your escrow costs increase, your escrow account is likely short of the funds needed over the course of your next year. That is called a shortage, and a shortage in your escrow account would be an additional payment on top of the higher escrow costs. You can choose between adding more to your monthly payment to cover that shortage over time, which is what most people choose to do.  Or, you can choose to make a payment to escrow to cover the shortage.

If your escrow costs decrease, your escrow account may have an overage and you’ll be sent a check to reimburse you that overage.

 

Learn more https://alexjaffe.com/what-is-escrow

 

Pre-Qualify Now: https://ajaffe.firsthome.com/startapp

ajaffe@firsthome.com 240 – 479 – 7658