If you have a mortgage, you likely have an escrow account your mortgage bank uses to pay your property taxes or insurance. In fact, according to some surveys, 80% of people with a mortgage also have an escrow account.
When you make a mortgage payment, it includes a small amount that is deposited into your escrow account. Generally, the amount you contribute is determined by adding the costs for your insurance to your estimated annual property taxes and dividing that amount by the number of mortgage payments you will make in a year.
Each year, lenders like Walpole Co-operative Bank evaluate the account to ensure the amount you contribute with each payment is enough to cover the anticipated expense. Based on the results of this annual review, your monthly contribution may change—which ultimately can impact your monthly mortgage payment.
The review may also show a shortfall, meaning the taxes and insurance cost more than anticipated.
At Walpole Co-operative Bank, we recently completed our annual analysis of escrow accounts. Customers with a Walpole Co-operative Bank mortgage are encouraged to check their July statement for an increase or decrease in their payment due to their Annual Escrow Analysis.
If your payment has changed
To avoid missed or incorrect payments, we encourage customers to update any automatic bill payments or online transfers to reflect the new amount.
If there was a shortfall
If your statement shows you owe additional due to a shortfall, you have two options:
- Pay the amount in full within 15 days from the date of your escrow analysis statement. (This ensures your next statement reflects the correct payment.)
- Do nothing and your payment will be spread over the next 12 months, which will be added to your monthly escrow payment.
Do you have a question about your escrow analysis or payment?
We are here to help. Contact our Loan Operations department by emailing loanservicing@walpolecoop.com (please note email is not secure) or call 508-668-1080 during business hours.
