What the payment includes
The monthly mortgage payment may include principal, interest, taxes, homeowners insurance, mortgage insurance, and other applicable items.
After Closing
Escrows explained
An escrow account collects part of the projected property-tax and homeowners-insurance costs with the mortgage payment, then the servicer pays eligible bills when due.
The amount can change
Taxes and insurance premiums may rise or fall, so the servicer analyzes the account and may adjust the payment.
Shortages and surpluses
An annual analysis may show a shortage, deficiency, or surplus. The servicer explains available repayment or refund treatment.
Keep watching the bills
Even with escrow, review tax and insurance notices and confirm they are paid correctly. Escrow is an assistant, not a reason to stop opening mail.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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