Why did my payment change?
When your taxes and/or insurance bills change from year to year, it may be necessary to adjust the amount you are paying into your escrow account, too.
Reasons your expenses changed may include:
- Insurance: Changes to type, extent, due date, rate, insurance policy, or carrier.
- Real estate taxes: Property value, tax rate, or due date changed.
- Your property value changed: If you have built a new home or renovated it, your property value will likely increase. Any substantial improvement to your property will likely increase your property taxes.
- Initial escrow deposit: Escrow costs may be estimated at loan closing if the information is unavailable. If the amount collected to set up your escrow account was more or less than your actual costs, your payment will be adjusted accordingly.
- Shortage: Your balance is expected to fall below your Minimum Required Balance. A shortage repayment is automatically divided across your payments for the upcoming 12 months, increasing your monthly payment. See our Escrow Shortage FAQs for more information.
I have a surplus, but my monthly mortgage payment went up. Why?
Even if you have a surplus, we are required to update the amount of your monthly escrow payment every 12 months based on the amount of your tax and/or insurance expenses in the prior 12 months. If your expenses have changed, the amount you pay into your escrow account each month as part of your monthly mortgage payment must be adjusted accordingly.
I am concerned about the new amount due for my monthly mortgage payment. What should I do?
If you anticipate these changes could lead to financial hardship, we want to help. Please reach out to our Homeowner Assistance Team. We will guide you on mortgage assistance options available for your loan and how to apply.
What do I need to do if my payment changes?
It is important to note your new monthly mortgage payment amount and effective date provided in your escrow statement. Remember to adjust your payment amount accordingly beginning on the effective date.
If your monthly mortgage payment is set up for automatic payments (monthly or biweekly ACH drafts) through us, your draft settings will automatically update with the new amount of your monthly mortgage payment on the effective date.
If you make your mortgage payments through a third-party entity (e.g. bank, government allotment, biweekly, or bill-pay service), be sure to update your payment settings to the new amount.
I am concerned about the new amount due for my monthly mortgage payment. What can I do?
If you anticipate these changes could lead to financial hardship, we want to help. Please reach out to our Homeowner Assistance Team. We will guide you on mortgage assistance options available, how to apply, and what to expect.