TBA Credit Union will conduct an annual escrow analysis to verify that sufficient funds are being collected in the escrow account to cover upcoming tax and insurance payments.

Surplus or Shortage?

If there is a surplus in the escrow account, you may be eligible for a refund. On the other hand, if there is a shortage, you may need to make a one-time payment or adjust your monthly payments to make up the difference.

What is an Escrow Account for Your Mortgage?

The main purpose of an escrow account is to ensure the timely payment of property taxes and homeowner’s insurance premiums, safeguarding TBA Credit Union’s investment and helping avoid possible liens or foreclosures.

How it Works
A portion of your monthly mortgage payment is directed into the escrow account, where TBA Credit Union uses the funds to cover your property taxes and insurance premiums as they come due.
Lender’s Role
TBA Credit Union, your lender, manages the escrow account, collects the funds, and makes the required payments on your behalf.
What Your Escrow Covers
Escrow accounts usually cover property taxes, homeowners insurance, and occasionally private mortgage insurance (PMI). However, they do not include homeowners association (HOA) fees or supplemental tax bills.
What Your Escrow Will Not Cover
Escrow accounts do not cover homeowners association (HOA) fees/dues or supplemental tax bills. These are paid by you, the consumer, on a monthly, quarterly, or annual billing.
Why Lenders Require it
TBA Credit Union typically require escrow accounts to safeguard their investment by ensuring property taxes and insurance are paid, thereby reducing the risk of foreclosure or liens on the property.

What Makes Your Mortgage Payment Change?

Property Taxes
Property tax assessments can fluctuate, impacting the amount needed in your escrow account.
Homeowners Insurance Premiums
Insurance rates can change, affecting the amount you need to set aside for insurance payments.
Mortgage Insurance (PMI)
If you have PMI, the premiums are factored into your escrow payment, and changes in PMI rates can affect your escrow.