If your mortgage loan has an escrow account, this portion of your payment could adjust annually. An Escrow Analysis statement detailing these changes is sent at least 30 days prior to the payment increase. Property tax bills and/or insurance premiums typically change yearly, which affects the escrow portion of your mortgage payment. This increase or decrease may result in an escrow shortage/deficiency or surplus. Your escrow payment for the upcoming year is projected by using the premiums paid out from the previous year.
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