Understanding Escrow Analysis
Escrow is a complicated topic that gets overlooked when talking about the home buying process. To learn more about what Escrow is read this article here (Link What is Escrow article). Each year, your lender that houses your Escrow account conducts an escrow analysis. This analysis includes an activity summary from the previous year and projections on your monthly escrow payment. These payments go towards the yearly tax and insurance fees that go along with homeowning.
Below is an example of what an escrow statement looks like. It is important to remember that every financial institution may be a little different in how they set this up, but the basic information will be included. A statement like this, along with details regarding any shortages or surpluses and corresponding payment changes is sent at the end of the year to outline where your money is being disbursed.
Sample Initial T & I Account
Disclosure Statement
John Smith Loan Number: 000011111
Property Address:
1234 South Street
Milwaukee, WI 53221
| Month | Projected Payment | Projected Disbursement | Disbursement Description | Balance Before Deposit | Balance with Deposit |
| Initial Balance of …………………………………………………………………………… | .00 | 4,126 | |||
| May | 487.00 | 487.00 | 4,613 | ||
| June | 487.00 | 974.00 | 5,100 | ||
| July | 487.00 | 1,461.00 | 5,587 | ||
| August | 487.00 | 4,622 | Property Taxes | -2,674.00 | 1,452 |
| September | 487.00 | -2,187.00 | 1,939 | ||
| October | 487.00 | -1,700.00 | 2,426 | ||
| November | 487.00 | -1,213.00 | 2,913 | ||
| December | 487.00 | -726.00 | 3,400 | ||
| January | 487.00 | -239.00 | 3,887 | ||
| February | 487.00 | 248.00 | 4,374 | ||
| March | 487.00 | 1,222 | Homeowner’s Insurance | -487.00 | 3,639 |
| April | 487.00 | .00 | 4,126 | ||
| Totals: | 5,844 | 5,844 | |||
For example purposes only
This form is the decider when it comes to the Escrow process. Deciding when to get an escrow account is a complicated decision that is either up to you or the financial institution that houses your mortgage. Even though Escrow is complicated, we here at Guardian Credit Union are here to answer any questions you have on how Escrow and your mortgage work. To contact us with any questions that you may have call us at (414) 546-7450 ext. 2001. We hope this example will help you in understanding escrow payments and disbursements.