An Escrow Analysis is a review of your escrow account to ensure enough funds are collected to pay upcoming installments of your insurance premium(s) and/or property taxes. Your Escrow Analysis statement is designed to provide you with details about the review of your escrow account and the resulting changes to your monthly escrow payment. Please make certain that your name and address are shown correctly on the statement.
If you have questions, please contact the Escrow Department by emailing [email protected] with questions about your escrow account.
1-Escrow Activity Summary for Prior Year: This section includes a table of information that was used during your escrow analysis to determine the changes to your monthly payment. The table lists all of the expected and actual escrow transactions for your escrow account during the previous 12 months, including:
Payments: Projected – The escrow portion of your monthly payment that was scheduled to be made each month.
Payments: Actual – The escrow portion of your monthly payment that was actually made and was deposited into your escrow account.
Disbursements: Projected – Funds that were expected to be paid out of your escrow account to pay for anticipated property taxes and insurance premiums.
Disbursements: Actual – Funds that were actually paid out of your escrow account to pay for property taxes and insurance premiums.
Escrow Balance Projected – The balance of your escrow account at the end of each month based on the Projected Payments and Projected Disbursements made during the month.
Escrow Balance Actual – The balance of your escrow account at the end of each month based on the Actual Payments and Actual Disbursements made during the month.
2-Escrow Projected Summary
The Escrow Projected Summary table lists the Projected escrow transactions for your escrow account during the upcoming 12 months. For each month in the listing, the Beginning Balance is compared to the Required Balance to determine if there are enough funds to cover the expected property tax and insurance premium payments and meet the Escrow Reserve requirement for your account.
The Beginning Balance is the amount needed in the account by your next escrow period start date (March 1st in the example to the right) to ensure there are enough funds to cover expected property tax, insurance premium payments and meet the escrow reserve requirements.
3-Projected Disbursement Summary
This is the annual projected amount for the taxes and insurance to be paid during the upcoming 12 months based on the amounts owed the prior year. The reserve section is a two month cushion that a lender is permitted to maintain in your escrow account by Federal Law. This reserve is built into your account to help cover unanticipated increases in your property taxes and insurance.
4-Escrow Analysis Summary for the Coming Year
This section explains what the balance will be in your escrow account at the start of your next period, (eg: In the sample to the right it is March 1st.) It also explains if your escrow balance reflects a shortage or a surplus. An escrow shortage means your annual taxes and/or insurance payment was more than what we collected in your monthly mortgage payment for the previous 12 months. If you have a shortage we will collect the shortage over the next 12 month period. However, you may choose to pay the shortage in full by the date indicated on the statement. If you have a surplus it means your taxes and/or insurance payment was less than what we anticipated. If you have a surplus of $50 or more you will receive a check within 30 days.
This section outlines the difference between your old payment to what your new monthly payment will be.
Old Monthly Payment: This is a breakdown of your old monthly payment amount prior to this escrow analysis.
New Monthly Payment: This is what your new payment will be depending on if you pay the shortage, or you prefer to make up the shortage over the next 12 months.
Escrow Payments: Payments made for your property taxes and/or insurance premiums.
6-Escrow Shortage Payment Notice: Please mail this payment coupon back with the amount listed if you would like to pay your escrow shortage.
Please Note: The Callaway Bank does not control the actual amount of your tax and insurance bills. Please contact your insurance company or your local insurance agent if you have questions about changes to your premium. Please contact your local tax office if you have questions about your tax amount.
If you have questions regarding your statement, please contact our Escrow Department at 573-592-6396.