Escrow Analysis

Escrow Analysis FAQs

An escrow analysis ensures that there are sufficient funds in your account to cover upcoming insurance premium(s) and property taxes.

Due to recent challenges faced by the Florida homeowners insurance market, your next Escrow Account Disclosure statement might show a significant increase in your monthly escrow payment.

An Escrow Account is managed by your mortgage provider and used to make payments on your real estate taxes and insurance premiums. When you make a payment to your mortgage, a portion of that payment goes into the Escrow. 

An Escrow Account helps you manage large payments by splitting them into smaller monthly chunks. You don’t have to worry about missed or late payments because we take care of it! 

An Escrow Analysis is an annual review of your Escrow Account to ensure that correct payments are being made. The analysis is a regulatory requirement under the Real Estate Settlement Procedures Act (RESPA). 

 

The Escrow Analysis is required to: 

  •  Find shortages or excess funds 
  • Aim to maintain a balance high enough to pay tax and insurance expenses/premiums 
  • Calculate a new monthly payment sufficient to cover adjustment amounts on taxes and insurance bills each year

The first analysis of your Escrow Account is performed within 12 months from your loan closing. After that, Escrow Analyses are performed annually according to the Escrow Analysis schedule for your state. Frequently, the first tax bills paid carry over from the previous owner and do not represent the current tax assessment for your property. The most common of these conditions are new construction, purchasing a home (prior owner exemption differences), partial year bills, and improvements that have not been added to the bill. 

When you obtain a new home loan, GTE will conduct an initial Escrow Analysis to establish your Escrow Account. The analysis will predict the amounts of taxes and insurance premiums you will need to pay throughout the year. That amount is then divided by 12, which determines the monthly amount paid into your Escrow Account from your mortgage payment. 

The annual Escrow Analysis is mailed out in mid-February. Please keep an eye on your mail for it. Contact us if you do not receive it by end of February at 813.871.2690 ext. 40467 option 4 

There are two ways to see your Escrow balance. 

 

Option 1: Online Banking 

  • Once you log in, select your home loan account. 
  • On the right-hand panel, you will see your home loan details. 
  • The screenshot below highlights where you can see your Escrow balance. 

escrow24-1.jpg

 

Option 2: Monthly Home Loan Statement

  • On the left-hand side towards the middle of the page you will see your Escrow balance. 
  • This is highlighted in the image below. 

escrow24-2.jpg

We project the upcoming years’ payments on the amount of taxes and insurance you paid during the past 12 months. Monthly payments may be adjusted to remain above the required minimum balance during the next 12 months. The minimum balance is typically two months of escrow payments. 

  • Shortage: when your escrow account balance does not cover the amounts paid for your property taxes and insurance. This happens when you’ve had an increase in your taxes and/or insurance bills.
  • Surplus: when your escrow account costs were lower than projected. If the surplus is $50 or more, you will receive a refund in the form of a check. The check is issued 30 days from the analysis date. If your loan is past due 31 days or more at analysis time, a refund will not be sent to you. To receive your surplus refund, you must bring your loan current. Surpluses less than $50 will remain in your escrow account and could lower your monthly payment. 

Funds that are required to cover unanticipated disbursements or disbursements made prior to the payments being available in the account. Usually equates to two months of escrow payments.  

There are a few reasons shortages can occur:

  • Taxes were reassessed or went up 
  • Insurance premiums increased
  • Due dates for your taxes and/or insurance premiums changed
  • You made fewer payments into your Escrow Account
  • Your beginning Escrow balance was lower than previous years due to higher payouts

If you have questions about increases in your taxes or insurance, please reach out to your insurance agent or tax authority.

You can pay your shortage as soon as your Escrow Analysis is generated. These are generated in mid-February. Your payment must be processed no later than March 15th to avoid impacting your April 1st payment. 

If you think you will have a shortage throughout the year, you can make additional Escrow payments at any time. 

Your escrow shortage payment must be processed no later than March 15th to avoid impacting your April 1st payment.

  1. Login to your account
    • Verify funds are available in your Savings/Checking at GTE
  2. If you need to transfer into GTE please do so before making your Escrow payment.
  3. Select your home loan account
  4. Select ‘Payment’ on the left-hand side, as shown in the screenshot below:
    escrow24-3.jpg
  5. Select ‘Escrow Payment’ as shown below:
    escrow24-4.jpg
  6. The question ‘Are you paying your escrow shortage’ will appear. Select ‘yes’ as shown below:
    escrow24-5.jpg
  7. Select ‘Next’
  8. You must pay the exact amount of your listed shortage and deficiency amounts, anything less/more than the exact amount listed on your disclosure statement will result in the funds being applied to your regular escrow account and will not reduce your payment.
    • You will see this message when you select ‘What is escrow shortage?’
      escrow24-6.jpg
    • Review the confirmation page for accuracy. Verify the payment amount is correct and you have selected ‘Escrow Payment’ and selected ‘Yes’ to paying your escrow shortage.
      escrow24-7.jpg

Please send a check with your loan number and “escrow deposit” in the memo line to

  • GTE Financial
    PO Box 75028
    Chicago, IL 60675-5028

Your check must be processed no later than March 15th to avoid impacting your April 1st payment.

GTE will collect shortage over 12 months starting with your April 1st payment. Once the shortage is paid in full, the monthly payment will be adjusted, so that it no longer includes the shortage.

Yes, your payment amount will change if your property taxes and insurance premium amounts have changed. 

April 1st

You can minimize the impact by reviewing your Escrow Account periodically. Keep an eye out for your property tax assessment and your homeowners insurance to catch any increases early. Set aside money or make special Escrow only payments towards your Escrow Account when tax and insurance premiums have increased.

  1. Login to your account
  2. Verify funds are available in your Savings/Checking at GTE
    • If you need to transfer into GTE please do so before making your Escrow payment.
  3. Select your home loan account
  4. Select ‘Payment’ on the left-hand side, as shown in the screenshot below:
    escrow24-8.jpg
  5. Select ‘Escrow Payment’ as shown below:
    escrow24-9.jpg
  6. Enter the amount of the payment you would like to make
    escrow24-10.jpg
  7. Select ‘Next’
  8. Review the confirmation page for accuracy.
  9. Select ‘Finish’
    escrow24-11.jpg

For a free quote, contact GTE Insurance.

quotes@gteinsurance.com or 813-414-6787

 

Contact GTE if your homeowners insurance policy changes. If your homeowners insurance is paid through Escrow, GTE will need to know where to send payments. If you switch your home insurance company, make sure your new policy covers all your needs, including sufficient insurance limits for your house, belongings, and liability coverage. Do not cancel your current homeowners insurance policy before purchasing a new one. Make sure the new policy’s effective date is on or before your current policy’s cancellation date to prevent gaps in coverage.

Call for more information.

813-871-2690 x47855