What if I pay a mortgage shortage?

Option 1: Pay nothing and spread the shortage amount evenly across next year’s payments. Option 2: Pay the full shortage now. Please note, if your tax and/or insurance expenses have increased, your monthly mortgage payment may still go up, even if you pay all of the shortage.

What is an escrow shortage?

An escrow shortage is when you don’t have enough money in your escrow account to cover the actual amount needed to pay your bills. Money for the escrow account comes directly from your monthly mortgage payment. How much of the money you pay that goes to your escrow account is determined by your yearly escrow analysis.

Can escrow shortage affect mortgage payments?

When the funds in your mortgage escrow account are insufficient to meet the rising costs of property taxes and homeowner’s insurance, you face an escrow shortage. This situation can result in higher monthly mortgage payments to compensate for the deficit. Can I choose how to repay my escrow shortage?