Homeowners in Texas have either heard about or experienced the dreaded escrow shortage and would prefer to avoid it at all costs since it often results in an increased house payment.

An escrow shortage occurs when the taxes and insurance portion of your mortgage payment that gets set aside each month can no longer cover the full value of the homeowners’ insurance premium or the annual property taxes.

Every single year, escrow analysis is done by your mortgage company in February or March. Then, property tax values come out, providing you the opportunity to protest them during the summer.

If you are looking to buy a home in Texas, you should expect to shop around for homeowners’ insurance yearly so that you’ll always be abreast of your insurance premium and knowlegable about your coverage.

When you receive the escrow analysis statement from your mortgage company, you may face a payment increase to adjust for the rising taxes and insurance premiums. However, when you understand how to read the statement, you’ll see you have several alternatives.

In this episode, I’ll walk you through how to read your escrow analysis statement, explain how to ensure your escrow account stays funded, and how to perform your own due diligence on property tax payments and insurance premiums. If you follow the math and can be resourceful, you may discover an error in the mortgage company’s escrow analysis, resulting in less of a monthly payment increase.

Get out your statement, a pen, and highlighters! We’re going to investigate your escrow analysis together.

In this episode, you’ll also hear:

• If you have a government-backed mortgage loan such as FHA, VA, or USDA, then it’s mandatory to have an escrow account
• How to analyze the estimated cost of taxes or insurance vs. the increase in your payment
• Understanding which taxing entities (city, county, school districts, etc.) will be on your annual property tax bill

Must-listen moments:

[02:08] Explanation of what an escrow account is

[08:45] Two ways your lender can reconcile your escrow account

[14:15] What are the keywords to look for when you’re looking at your escrow account statement

To contact us visit www.loanwithjen.com

Equal Housing Opportunity Lender NMLS# 514497

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