Tri-Cities Credit Union Members who hold a mortgage with us will soon receive an important document, the Escrow Analysis, which reviews the funds in your mortgage account allocated for property taxes and homeowners’ insurance.
An escrow analysis reviews the amount of money in a member’s mortgage account set aside to pay property taxes and homeowners’ insurance. Most TCCU mortgages factor these costs into monthly payments in addition to principal and interest.
Every September, an analysis is completed to determine whether members have an “overage” or “shortage” in their escrow account.
An overage occurs if a member’s escrow account has a surplus; the funds will be transferred to their Regular Shares account before the payment change month (October).
Shortages, however, are more common. Shortages are due to either or both property taxes and homeowners’ insurance policies increasing, and TCCU ensuring that enough funds are in escrow for their anticipated annual disbursements.
TCCU members have the following choices when it comes to handling the shortage;
Pay the whole difference shown on their mailer and keep their monthly payments roughly the same.
Pay the difference in 12 installments added to your mortgage payment, effective in October.
Note, even if the shortage is paid off in full in one payment, the holder’s overall payment could still slightly increase if their taxes have increased.
If you have any questions about your escrow analysis, do not hesitate to reach out to us at Tri-Cities Credit Union!