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.

Should you pay for a mortgage shortage upfront?

Instead of paying for the shortage upfront with one payment, you can spread it out over your monthly payments for the next year. Essentially, you divide the shortage amount by 12 and add the resulting figure to your monthly mortgage payments. This option may make sense if you can't pay the full shortage amount upfront. 3.

How do I pay off a escrow shortage?

Pay off the shortage in full. You can make a one-time escrow shortage payment to your mortgage company to cover any existing deficiency and/or get back up to the required minimum balance based on your new monthly escrow payment. This lump-sum payment is applied directly to your escrow account. Pay off the shortage over the next 12 months.