An escrow account is set up by your mortgage lender to hold funds for payment of property taxes and homeowners insurance. Checking your escrow account regularly is important to ensure that enough funds are being collected to cover these expenses. Here’s how you can check your escrow account:
1. Contact your lender: The easiest way to check your escrow account is to reach out to your lender directly. They will be able to provide you with up-to-date information on your account balance and payments.
2. Review your monthly statement: Your monthly mortgage statement should detail how much money is being collected for your escrow account and how it is being used to pay property taxes and insurance.
3. Online account access: Many lenders offer online account access where you can log in and view your escrow account balance, payments, and transactions.
4. Annual escrow analysis: Your lender is required to perform an annual escrow analysis to ensure that you are paying the correct amount into your escrow account. This will provide you with a detailed breakdown of your escrow activity for the year.
5. Request an escrow account statement: If you prefer a hard copy of your escrow account information, you can request a statement from your lender outlining your account activity.
FAQs about checking your escrow account:
1. How often should I check my escrow account?
It is recommended to check your escrow account at least once a year or whenever there are changes in your property taxes or insurance premiums.
2. Can I make changes to my escrow account?
You can request a review of your escrow account if you believe there are errors or if your property taxes or insurance costs have changed.
3. What if my escrow account is short?
If your escrow account is short, your lender may give you the option to pay the difference in a lump sum or increase your monthly escrow payments.
4. What happens to any extra funds in my escrow account?
Any excess funds in your escrow account may be refunded to you or applied towards your future mortgage payments.
5. Can I opt out of having an escrow account?
Some lenders may allow you to opt out of having an escrow account if you meet certain criteria, such as having a substantial amount of equity in your home.
6. Why does my escrow payment change each year?
Your escrow payment may change each year due to fluctuations in property taxes and insurance premiums.
7. How is my escrow account funded?
Your escrow account is funded through a portion of your monthly mortgage payment, which may include property taxes, homeowners insurance, and possibly other items like mortgage insurance.
8. What if I receive a refund from my escrow account?
If you receive a refund from your escrow account, you can choose to have the funds returned to you or applied towards your mortgage balance.
9. Can I see a breakdown of my escrow payments?
Yes, your lender should provide you with a detailed breakdown of your escrow payments and how they are being allocated.
10. What if I have questions about my escrow account?
If you have questions or concerns about your escrow account, don’t hesitate to contact your lender for clarification.
11. Do I need to monitor my escrow account if my lender is handling it?
While your lender is responsible for managing your escrow account, it’s still important to monitor it to ensure accuracy and proper funding.
12. What should I do if I suspect there is a mistake in my escrow account?
If you suspect there is a mistake in your escrow account, notify your lender immediately and request a review of your account to address any discrepancies.