Carrington reviews your escrow account at least once a year to make sure it is funded correctly. This process is called an escrow analysis and helps ensure that your account has enough funds to cover property taxes, homeowners’ insurance and other escrowed expenses, as applicable.
During the analysis, we will check whether your account has a surplus (extra funds) or a shortage (insufficient funds). If needed, we will adjust your monthly mortgage payment to keep your escrow account properly funded.
Where can I find information about my escrow analysis?
Your escrow statement will show a breakdown of your escrow account activity over the past year, along with estimated taxes and insurance costs for the upcoming year.
We use your most recent tax and insurance amounts to estimate next year’s payments.
How will I know if my escrow account changes?
You’ll receive an updated escrow statement when the analysis is complete. To view your statement online:
If you have opted into paperless statements, you will receive an email when the document is available online.
What is an escrow cushion?
An escrow cushion is an extra amount kept in your account to help cover unexpected increases in taxes or insurance. The standard cushion is two months’ escrow payments (unless otherwise required by state law or if your loan agreement requires a different amount). If your escrow balance falls below the minimum required cushion, you’ll have a shortage, which may increase the escrow portion of your monthly payment.
Where can I find escrow account details?
For your current escrow balance, payment details and recent disbursements:
Can I add or remove an escrow account?
If you have an FHA, USDA or VA loan, an escrow account is required. If you have a conventional loan and want us to remove your escrow account, please contact our customer service team to review your options. Escrow accounts can make managing large expenses like taxes and insurance easier by spreading the costs over time.
For more information about your escrow account, visit Escrow FAQ.