Skip to main content

Why would my new payment be different?

  • Your property taxes and/or insurance premiums changed.
  • Your taxes were reassessed.
  • Your insurance provider(s) changed.
  • The due date of your property taxes and/or insurance premiums changed.
  • Escrow payments into your account were more or less than expected.
Escrow Shortages & Surpluses

A shortage occurs when the escrow account balance at its projected lowest point for the next 12 months is below the required minimum balance. If your taxes and/or insurance costs were lower than expected, your account may have a surplus.

If you have questions about an increase in your property taxes or insurance premiums, please contact your local taxing authority or insurance agent.

Frequently Asked Questions (FAQs)

Each year we project how much you’ll need in your escrow account for the upcoming year. We base it on the amount of taxes and/or insurance you paid during the past 12 months. The total paid is divided by 12 to get your projected monthly escrow payment.

Sometimes, your payment must be adjusted to ensure your monthly balance remains above a required minimum balance during the next 12 months. This minimum balance is typically equal to two months of escrow payments.

If your taxes and/or insurance change during the next year or your monthly escrow balance falls below the required minimum amount, you could have a shortage or surplus in your account when we do an Annual Escrow Analysis next year.

We estimated your tax payments and/or insurance premiums before your loan closed using the most recent tax and/or insurance amounts paid on the property. If your home is newly constructed, we may base our estimate on the taxes you paid for the property before you made any improvements.

We have to project your tax and/or insurance premiums based on the amounts you paid in the previous year, unless we receive official notice of an amount change for the upcoming year from a taxing authority or insurance provider.

Your payment may still go up, even if you pay the entire shortage, if your taxes or insurance increase to cover that additional expense.

No. If you have an escrow account with us we will also receive bills for current property taxes and insurance. These expenses will be paid on your behalf.  

You need to let us know as soon as possible by one of the convenient ways below that you’ve changed your coverage or insurance company. Please include your name, property address and loan number, along with the new policy information.

Need assistance or have any questions? Contact us, we're happy to help!