escrow increase

Hello!

I am in need of someone who knows a lot about mortgatges and escrow payments!

We just received our mortgage analysis and we are short $1620 in our escrow account. Our taxes and insurance only increased $950. So why is our shortage so much higher than our tax/insurance increase?

They may not have taken enough money last year and twith the increase of $950 they are making sure that they have the money.. There is what is called an aggregate adjustment that the banks do to determine how much should be in your escrow account. It is a computer program and they put in information such as date taxes are due--what your yearly breakdown is for insurance and taxes and then it determines what you should have in your escrow account. From that they determine whether you have enough in there or if you have an overage and will return any overage or ask that you give them the shortage.

Hope this helps.