Escrow Archives - Page 2 of 4

Escrow might sound like a fancy term, but it’s not rocket science. Let’s break it down into simple terms. In simple terms, an escrow analysis is a review of your escrow account conducted by your mortgage lender. Think of it as a regular check-up for your escrow account. You might be wondering, what is an escrow account? An escrow account holds funds collected with your monthly mortgage payment to cover expenses like property taxes, homeowners insurance, and sometimes even mortgage insurance.

Why It Matters

Without a proper escrow analysis, you might end up short on cash when those tax and insurance bills roll in. While your mortgage payments stay consistent, taxes and insurance costs can fluctuate. So, this analysis helps your lender keep everything in check.

How It Works

When you close on your home, your lender sets up an escrow account. This is where you’ll deposit your monthly payments. Your lender then takes care of paying your mortgage, insurance, and taxes from this account.

What to Expect from Your Analysis Statement

Your lender typically sends out an escrow analysis statement each year. Your lender calculates what you owe for taxes and insurance each month, dividing the total by 12. They might also include a cushion to cover any unexpected increases.

It breaks down:

Summary: Shows your account balance for the upcoming year.

Changes: Highlights any differences in payments.

History: Summarizes the account’s activity.

Projections: Estimates upcoming payments based on past data.

Understanding the Process

Your lender compares projected payments with actual ones. They make sure there are no deficits or surpluses. If there’s too much in your account, you might get a refund. If there’s not enough, your monthly payments might go up.

How to Read Your Statement

It’s designed to be easy to understand. But if you’re unsure, your lender can help. Look out for terms like:

Minimum Escrow Account Balance: The lowest amount needed in your account.

Escrow Surplus: Extra funds in your account.

Escrow Shortage: Not enough in your account.

Common Adjustments: Changes in payments due to tax or insurance changes.

What If You Disagree?

Reach out to your lender if you spot any issues. Providing documentation can help resolve any discrepancies. Understanding escrow doesn’t have to be stressful. If you have any more questions, feel free to ask!

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

Escrow Analysis: Your Key to Understanding Mortgage Payments

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