Your escrow account analysis statement provides a breakdown of the money collected in your escrow account and used to pay your property taxes and homeowners insurance. Each year, Amboy Bank reviews your account to determine whether the amount being collected is enough to cover upcoming expenses and maintain the required balance.
Your statement explains any changes to your monthly mortgage payment and identifies whether your account has a shortage or surplus.
Frequently Asked Questions
Will my monthly mortgage payment change next year?
It could, depending on changes to your property taxes and insurance premiums.
Your monthly mortgage payment includes:
Principal and interest: The amount you pay toward your mortgage loan. These amounts are expected to stay the same.
Escrow: The amount collected to pay your property taxes and insurance premiums. This amount may change as these costs increase or decrease.
Each year, Amboy Bank reviews your property taxes and insurance costs to determine whether your monthly escrow payment needs to change. If your payment changes, your new monthly payment will take effect January 1.
How will my new payment be collected?
How your payment is adjusted depends on how you currently make your mortgage payments:
Amboy Bank automatic payments: Your payment amount will be adjusted automatically.
Monthly billing statement: Your bill will reflect the new payment amount.
Payments through another financial institution: You may need to update your recurring payment amount with that institution.
What is an escrow shortage?
An escrow shortage occurs when your account balance is lower than the amount needed to cover projected property taxes and insurance expenses while maintaining the required cushion. This can happen when property taxes or insurance premiums increase during the year.
If you have a shortage, Amboy Bank divides the amount into equal payments over the next 12 months and adds it to your monthly mortgage payment. You may also choose to pay the shortage in full using the enclosed payment stub. Keep in mind that changes in property taxes or insurance may still affect your monthly payment.
What is an escrow surplus?
An escrow surplus occurs when your account has more money than is needed to cover projected expenses and maintain the required balance. If your surplus is $50 or more and your mortgage payments are current, a refund check is included with your statement, subject to applicable requirements.
Why might my monthly payment increase even after I repay an escrow shortage?
Paying your shortage in full restores your escrow balance, but it does not change the cost of your property taxes or insurance. If these expenses have increased, your regular monthly escrow payment may also need to increase to make sure enough money is available to cover them in the coming year.
Who should I contact if I have questions?
If you have questions about your escrow analysis, monthly payment, or repayment options, please contact us at 1-800-94-AMBOY.