Ok, we`re not going to pretend like this is an easy one to understand. No one would say escrow is the most straightforward part of a home loan. But don`t worry, we`ve got you covered.

What is Escrow?

Simply put, an escrow account is like a separate side account that`s there to cover your property taxes and/or your homeowner`s insurance. Think of it like a safe money stash that your lender holds for you to pay for property taxes and homeowner`s insurance.

The review
Once every year, we sit down and review your escrow account to make sure that it`s in excellent shape for the upcoming year.

Property taxes (paying just got easier)
An escrow account takes care of another big payment you have, like property taxes. And this makes paying your property taxes a cinch (and who doesn`t want that!).

Homeowner`s insurance (simplify your payment)
The biggest advantage to having an escrow account is that your homeowner`s insurance is included in your monthly mortgage billing statement--making payments easier to manage.

If you`d like to pay the shortage in your escrow account online and you are current on payments, click here to sign into your account.

You may pay the shortage in your escrow account by phone at 844-732-7121.

For additional ways to pay, see your monthly billing statement.

If the shortage causes a financial hardship and you feel that you cannot afford the increased payment amount, please call our Homeowner Care Department at 844-732-7121 right away, and we`ll be happy to discuss options that are available to you.

All you need to do is mail your tax bill to the address below. Please include your loan number.

Credit Union of Texas
ATTN: Property Taxes
95 Methodist Hill Drive Suite 100
Rochester, NY 14623

You may have received an overage check because your annual insurance premium, taxes (or both) were less than originally expected. Take a look at the escrow analysis statement included with the check--it will show you how the overage was calculated.

Federal law requires that we return any surplus over $50 directly to you. However, if you would like to return the overage check to us and have it applied as a principal reduction, we can do that too! Please do so by endorsing the back of the check to Credit Union of Texas and send it to the address below.

Credit Union of Texas
ATTN: Cashiering
3138 E. Elwood Street
Phoenix, AZ 85034

A shortage means an amount by which a current escrow account balance falls short of the target balance at the time of escrow analysis. If your escrow account analysis discloses a shortage of less than one month`s escrow account payment, then we may require you to repay the shortage amount within 30 days.

If your escrow account analysis discloses a shortage that is greater than or equal to one month`s escrow account payment, then we may require you to repay the shortage in equal monthly payments over at least a 12-month period.

A deficiency is the amount of a negative balance in an escrow account.

If your escrow account analysis confirms a deficiency, then we may require you to pay additional monthly deposits to your account to eliminate the deficiency. If the deficiency is less than one month`s escrow account payment, then we may require you to repay the deficiency within 30 days. If the deficiency is greater than or equal to one month`s escrow payment, we may require you to repay the deficiency in two or more equal monthly payments.

Please see your Escrow Analysis Statement for further details.

The repayment option allowing for payment over 12 months for shortages that are greater than or equal to one month`s escrow account payment is derived from federal regulations governing escrow shortages and deficiencies. Although a lump sum payment is not a required option, Credit Union of Texas will allow for it upon homeowner request. If you would like to repay your shortage in a lump sum, you may do so using one of the payment options below.

The repayment option allowing for payment over 12 months for shortages that are greater than or equal to one month`s escrow account payment is derived from federal regulations governing escrow shortages and deficiencies. Although paying in less than 12 months is not a required option, Credit Union of Texas will allow for it upon homeowner request. If you would like to repay your shortage in less than a 12-month period, please contact our Homeowner Care Center at 844-732-7121.