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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?
Yearly escrow review
Property taxes and insurance premiums change over time. We review your escrow account each year to make sure you’ll have enough to cover these expenses. 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 the escrow account 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.
Escrow statement
Take a tour of a sample escrow statement and learn what information you'll find in each section.
Additional Resources
For information on your specific property taxes or insurance costs, contact your local property tax office or your insurance company.
