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What You Need to Know About Escrow on Your Mortgage

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Many homeowners have a variety of questions when their mortgage includes an escrow account. Whether you’re an experienced homeowner or a first-time homebuyer, we’re here for you. That’s why we’re breaking escrow down for you to help you understand the annual escrow analysis statement you’ll receive in the mail. 

What is Escrow?

Your escrow payment is part of your total monthly mortgage payment. Escrow funds are used to pay real estate taxes, property insurance, mortgage insurance, and other related items. Each year, an escrow analysis is conducted to estimate future payments to and disbursements from your escrow account.

It’s important to note if taxes or insurance change, it would impact your monthly mortgage payment. To learn more about your assessed value which is used to calculate taxes, reach out to your specific town, city, or village tax assessor.

Based on the location of your property, the following taxes could apply:

  • Town
  • County
  • City
  • Village
  • Borough/Township
  • School
  • Fire District

What is an Escrow Account Disclosure Statement?

An Escrow Account Disclosure Statement projects the tax payment activity for the upcoming twelve months and calculates your new payment and indicates the surplus or shortage, if applicable. The annual history shows all transactions for your account since your last escrow analysis.

What if I have a surplus in my escrow account?

If you have a surplus greater than $50.00 in your account, you will receive a check in the amount of that surplus. If the surplus amount is less than $50, it will be retained within the escrow account and will lower your monthly payment by 1/12 of the surplus amount.

What if I have a shortage in my escrow account?

Your monthly payment will be increased by 1/12 of the shortage as indicated on the last page of your statement. You can reduce the amount of this increase by depositing additional funds into your escrow account prior to your payment due date. Also, remember all such deposits must be made by the date stated in your analysis statement. If you choose to make an additional deposit, you will receive a new escrow analysis statement with your adjusted monthly payment.

What if there is a change to my monthly payment?
If there is a change to your monthly payment, you may need to make adjustments through: 

  • Your employer’s payroll department
  • Your financial institution’s online bill pay service
  • Your financial institution’s recurring payments

For changes to the amount of your automatic transfer within your Corning Credit Union account, including a reduction, please contact us to speak to a Member Service Representative.

What about making adjustments to curtailment?
Your new payment does not include any additional or optional principal payments you have elected. If you have automatic payments set up with additional principal amounts, once your new payment goes into effect, you will need to adjust and update your automatic payments by adding the additional amount you want to go to principal to the new payment amount indicated on your escrow analysis statement. 

Property Tax Relief Programs

Some states offer property tax relief programs for eligible homeowners. Be sure to check with your local government for any applicable property tax relief programs you may qualify for.

What if I have additional questions?

If you have questions regarding your escrow analysis, please contact our mortgage department weekdays between 9:00 a.m. and 4:45 p.m. (ET) at 607-962-3144 or 800-677-8506. Press option 2, followed by option 2, then option 2.