What You Need To Know About Escrow.
Escrow is a money reserve that is collected along with your monthly mortgage payment then used to pay for taxes and insurance premiums on your property. Escrow payments are made along with your mortgage payments, so that money reserve is available when property taxes and insurance are due.
What does your escrow account pay for?
Other items that can be paid from your escrow account, but are not included in your monthly payment:
- Special or added assessments
- Interim or supplemental tax bills
- Water and other utility tax bills not collected in your monthly payment
- Per capita tax bills: taxes from your municipality or school district
Facts about escrow you should know
Cenlar will perform escrow analysis for you.
Each year, Cenlar is required to perform an analysis on your escrow account. As a result of the escrow analysis your monthly payment may increase or decrease, if there are changes to your property taxes or homeowners insurance premiums.
You can add an escrow account to your loan.
An escrow account, managed by Cenlar, is an easy way to manage property taxes and insurance premiums for your home. If your loan does not have an escrow account, you may request that an account be set up. Cenlar will calculate the amount of funds needed to get started.
You can waive or stop escrow, if eligible.
If you would like to have your escrow requirement waived or stopped, you must submit a signed, written request to Cenlar. When the request is received, your loan will be reviewed for escrow waiver eligibility. Please know that based on the type of loan you have, there may be a requirement for you to maintain escrow or until certain loan conditions are met.
Changes to insurance can effect escrow.
If you have changes to your homeowner’s insurance, please let Cenlar know as soon as you can. Please also provide us with a copy of your insurance renewal on an annual basis using one of the following methods: