What Is A Mortgage Escrow?
The monthly amount that a borrower pays the lender towards their real estate taxes, homeowners' insurance and mortgage insurance (If required)
True or False: Escrows may be waived for borrowers with larger down payments or good credit
True
What mortgage loans require escrows?
Typically, escrow accounts are required for FHA and USDA loans and may also be required for VA and conventional loans where borrowers have less than a 20% down
What is another name for the required minimum balance in a escrow account?
Escrow Cushion
What is PITI?
Principal, Interest, Taxes and Insurance
What two things could change the amount of the escrow payment?
Taxes and Insurance
What Is a escrow surplus?
An amount by which the current escrow account balance exceeds the target balance for the account.
What is it called when the current escrow account balance falls short of the target balance at the time of an escrow analysis?
Shortage
What is the accounting that a servicer conducts in the form of a trial running balance for an escrow account?
Escrow Account Analysis
