Carrington Mortgage Services, LLC Learning Center

What is escrow analysis and how often is it performed?

Carrington Mortgage Services, LLC (CMS) completes an escrow analysis each year to ensure your escrow account is funded correctly. During the analysis we will determine any surplus or shortage, and adjust your monthly payment accordingly to cover all of the bills that are paid through your escrow account.

The analysis outlines the activity on your escrow account for the past year and the anticipated activity for the upcoming year. We use the tax and insurance amounts from the most recent year to project taxes and insurance for the upcoming year.

Buying a house can be a confusing and complicated process, especially for first-time buyers. So many unfamiliar terms, practices, and procedures; so many rules and regulations to follow. Of course, it’s all worth it in the end, when you finally get the keys to your new home and take possession of it, but in between, the process can seem full of convoluted twists and turns.

Many of the common questions borrowers have are related to escrow accounts, so we’ve created two videos just for you. Hopefully, after listening, you understand what an escrow account is and common issues that may arise.