How do you want to learn about escrow?
What is escrow?
It’s an easy way to manage property taxes and insurance premiums for your home. You don’t have to save for them separately because you make one monthly payment where:
- Part goes toward your mortgage to pay your principal and interest.
- The other part goes into your escrow account for property taxes and insurance premiums (like homeowners insurance, mortgage insurance, or flood insurance).
When those bills are due, we use the funds in your escrow account to pay them. Watch our videos to learn how escrow works.
Don't worry about sending us your tax or insurance bills – we usually get a copy from your local property tax office and insurance company. If we do need you to send one to us, we’ll let you know.
Built a new home?
Property taxes are based on land value at first. They go up when your home’s value is taxed too. To plan, put extra money towards escrow early on. Call us to learn more.
Yearly escrow review
Tax and insurance premiums change over time. We review your escrow account each year to make sure you’ll have enough to cover your bills. To help with any unexpected increases, you need to keep a minimum balance in your account at all times. It's calculated to not be more than 2 months of escrow payments.
During your review, we figure out how much will be in your account each month for the next 12 months. At its lowest point, if it’s projected to be:
- Below the minimum balance, you’ll have a shortage. Learn more about escrow shortage.
- Above the minimum balance, you’ll have an overage. Learn more about escrow overages.
We’ll send you a statement after each review to let you know of any changes to your account. Learn more about your escrow statement.
For information on your specific property taxes or insurance costs, contact your local property tax office or your insurance company.