Q: What is an escrow account?
A: An escrow account is a special account that we provide for you to pay your property taxes and/or insurance. In some states it is called an "impound" account. With an escrow account, you pay a portion of your taxes and/or insurance every month instead of once or twice a year. Each month, part of your monthly mortgage payment goes into your escrow account. When your taxes and insurance premiums are due, we pay those bills for you with the money in your escrow account.
Q: What is an escrow analysis?
A: Once a year, we are required by law to review your escrow account. We call that process an escrow analysis and this statement includes the results of our review. It includes a history of the activity on your account this year and the expected activity for next year.
Q: How is the lowest projected balance point determined?
A: You can find this figure on the "Next Year" chart in the Expected escrow account Activity section of your statement. On that chart, we estimate your escrow account balances for the next 12 months, including your new monthly escrow account deposit and anticipated withdrawals. The lowest projected balance point is highlighted on the chart.
Q: What is an acceptable minimum balance?
A: There must be enough money in your escrow account to pay your property taxes and insurance. To do that, the law allows us to require that you keep a minimum balance in the account. For most accounts, the minimum balance equals about two months of escrow payments. Some accounts have a smaller minimum balance. This reserve helps to cover increases in taxes and/or insurance.
Q: Why did my monthly escrow payment amount increase?
A: There must be enough money in your escrow account to pay your property taxes and/or insurance. If there is not enough money in your account, that creates a shortage and we will need to increase your monthly escrow payment amount. Some common reasons for a shortage include: increases in property taxes and/or insurance premiums
- Tax reassessments
- Insurance carrier changes
- Due date changes
- Fewer escrow deposits than expected
Q: If I want to pay my entire shortage in full, where do I send my payment?
A: Send a check (made payable to Cross Keys Bank) for the full amount of your shortage and the payment coupon at the bottom of the first page of your statement, using the enclosed envelope. Write the loan number on your check. If you do not have the coupon, send your check (with the loan number and "escrow shortage payment" written on it) to:
Cross Keys Bank
Attn: Escrow Department
1401 Hudson Lane
Monroe, LA 71201
Q: Will my escrow payment amount remain the same if I pay my shortage in full?
A: Maybe. If you pay your shortage in full, you will have the smallest possible increase in your monthly mortgage payment. However, your payment amount may still change if your property taxes and/or insurance amounts increased during the past year.
If your total monthly payment is increasing, please read this important information:
Increases in your monthly escrow account payments are usually due to increases in property taxes and/or homeowners' insurance. If you have questions about an increase in your property taxes or homeowners' insurance premiums, please contact your local taxing authority or insurance agent.