Mortgage Escrow Account Management Guide for Property Costs (2026)
Manage mortgage escrow accounts: property tax, insurance escrow, shortage handling, and surplus refund rules for mortgage cost optimization.
Summary
Escrow accounts hold property tax and insurance payments. This guide explains account management, shortage handling, and surplus refund rules.
Key Steps
- 1Understand escrow purpose: lender holds property tax and insurance payments.
- 2Track annual analysis: escrow review determines shortage or surplus.
- 3Handle shortage options: pay lump sum or spread over 12 months.
- 4Request surplus refund: over $50 surplus refunded within 30 days.
- 5Monitor cancellation eligibility: escrow removal after 20% equity.