Escrow Analysis

This guide outlines your Annual Escrow Account Disclosure Statement. It contains your mortgage payment breakdown, escrow calculations, escrow history, and more.

A. Escrow Trend

Overview of projected and actual yearly payments made from your escrow account.
These figures are calculated using data supplied by your insurance provider and local taxing authorities.

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B. Mortgage Payment Breakdown

Principal & Interest Payment: The portion of your payment applied to your loan balance and interest, as outlined in your mortgage agreement.
Escrow Payment: Funds deposited into your escrow account to cover annual property taxes and homeowners insurance payments.
Other Funds Payment Contractual: Amounts collected for any additional payments required under your loan terms.
Assistance Payment: Temporary financial support provided by outside agencies to help homeowners during qualifying hardship situations..
Payment: Additional funds collected to address a shortage in your escrow account for the upcoming year’s tax and insurance expenses.
Total Monthly Payment: The full monthly amount due, including principal, interest, escrow contributions, and any other applicable funds.

C. Annual Escrow Account Breakdown – Projections for Coming Year

Payment to Escrow: The portion of your monthly mortgage payment that is added to your escrow account.
What We Expect to Pay Out: The payments we anticipate issuing to your homeowners insurance provider and local tax authorities to cover upcoming bills.
The highlighted minimum balance reflects the amount your escrow account must maintain. This figure is calculated using information supplied by your insurance company and local taxing agencies.

D. Anticipated Beginning Balance Calculation

An estimate of your escrow account balance at the beginning of the next escrow calculation period.

E. Escrow Account History

A record of escrow payments and disbursements for up to the 12 months leading up to the effective date of this statement.

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F. New Escrow Payment Calculation

Unadjusted Escrow Payment: The projected annual total expected to be paid from your escrow account, divided into 12 monthly installments.
Surplus Reduction: If your escrow account has a surplus of less than $50, this amount may be applied to lower your monthly escrow payment.
Shortage Installment: If a shortage exists, an additional amount will be added to your monthly escrow payment to make up the difference.
New Escrow Payment: The final monthly escrow payment amount after applying any surplus credits or shortage adjustments.