Will I incur a charge or penalty in the event of a mortgage escrow account shortage?

A shortage reflects how much your mortgage escrow account is below the minimum balance to pay all items in the upcoming escrow period.

Fear not! Your shortage is spread over the upcoming escrow period at no charge.

We’re happy to help provide some clarity here! Some mortgage loans are required to have an escrow account, including the tax and/or insurance payments. Please contact us to discuss your options.

In general, any of the below conditions require you to have a mortgage escrow account:

• If your loan-to-value (LTV) is over 80%
• If your mortgage loan has an active private mortgage insurance (PMI) policy
• If your mortgage loan has rural housing insurance
• If you have a VA mortgage loan
• If you have an FHA mortgage loan
• If you have any late credit payments within the last 12 months
• If your mortgage loan has required flood insurance, you must escrow for both the flood and homeowner's insurance

Unfortunately, this isn’t possible. Due to federal regulations, we’re required to refund you any surplus over $50 based on anticipated payments. If you are anticipating changes to your escrow account, please contact us so we may discuss further.

Great news! There is no fee. Mortgage escrow accounts are maintained free of charge.