Can We Request Mortgage Escrow Balance in Texas?
Can We Request Mortgage Escrow Balance in Texas?
Yes. Texas homeowners can check their escrow balance while requesting an escrow analysis from their mortgage servicing company. Learning about escrow operations and balance changes as well as refund rights aids mortgage payment management.
An escrow account acts as a secure financial mechanism for mortgage borrowers since it guarantees timely payments for property taxes and homeowners' insurance along with HOA expenses if applicable. The money you pay to mortgage lenders each month becomes part of an escrow account which they maintain to pay for property expenses that become due. The flexibility of property tax rates and insurance fees causes your escrow balance to evolve whether you lack enough funds or maintain excess funds.
This blog explains escrow payment procedures, review request intervals and describes shortage and surplus situations.
Understanding Your Mortgage Escrow Balance
A portion of your mortgage payment funds interest and principal, yet the remaining amount goes to escrow. The escrow account accepts funds until your lender or loan servicer uses them to pay annual property taxes and homeowners insurance charges.
Your mortgage servicer runs yearly escrow analyses to confirm your escrow account can pay upcoming expenses. The mortgage payment amount may change when an escrow evaluation reveals a surplus or deficiency. Monitoring your escrow balance exceeding or falling short of estimates remains crucial due to this reason.
When Can You Request an Escrow Balance?
In Texas, you have the right to request an escrow balance statement from your mortgage servicer. Many lenders provide this information automatically during the annual escrow analysis, but you can also ask for a statement at any time to see how much money is in your escrow account.
Most mortgage servicers will provide an updated escrow balance upon request, either through an online portal, by phone, or by mail. If you’re unsure how to make a request, check your lender’s website or call their customer service department.
What Happens During an Escrow Analysis?
An escrow analysis is a review of your escrow account to ensure there’s enough money to cover your property tax and insurance payments. This audit helps prevent shortages and overages, allowing your lender to adjust your monthly payment if necessary.
Your lender will:
Calculate your projected escrow expenses for the next 12 months.
Compare the current balance with expected disbursements.
Adjust your monthly mortgage payment if there’s a shortage or surplus.
After the analysis, you’ll receive a statement outlining any changes in your escrow balance and monthly payment.
Escrow Shortages and How They Affect Your Mortgage Payment
If your escrow analysis reveals a shortage, it means there isn’t enough money in the account to cover upcoming payments. This typically happens when property taxes or insurance premiums increase unexpectedly.
When there’s a shortage, you usually have two options:
Pay the shortage upfront – You can make a one-time payment to cover the difference.
Spread it out over 12 months – Your lender will increase your monthly mortgage payment to make up the shortage gradually.
If you receive an escrow shortage notice, carefully review the details to understand why the shortfall occurred and decide how you want to handle the repayment.
Escrow Surpluses and Refunds
A surplus happens when there’s more money in your escrow account than needed. This can occur if property taxes decrease, insurance premiums drop, or an overestimation was made in previous calculations.
In Texas, if your escrow surplus is $50 or more, your lender is required to send you a refund. If the surplus is less than $50, the funds may remain in your escrow account and lower your future payments instead.
Keep in mind that escrow surpluses are rare, especially if property taxes increase annually. If you receive a refund, review your escrow analysis to ensure accuracy before spending the extra money.
Avoiding Escrow Issues
To prevent unexpected escrow shortages or high adjustments in your mortgage payment, consider the following:
Monitor property tax changes – If local property taxes are set to increase, expect a higher escrow requirement.
Review your homeowner's insurance policy – Premium hikes can affect your escrow balance.
Check your annual escrow analysis – This helps you stay ahead of any changes.
Communicate with your lender – If you’re unsure about your escrow balance or need assistance, contact your mortgage servicer for clarification.
Do You Have to Keep an Escrow Account?
While most homeowners have an escrow account as part of their mortgage, it’s possible to waive escrow if you meet specific criteria. In Texas, escrow is required for government-backed loans such as FHA, VA, and USDA mortgages. However, for conventional loans, you may opt out of escrow if you have at least 20% equity in your home.
Waiving escrow means you’ll be responsible for paying property taxes and insurance premiums directly. This can be beneficial if you prefer managing these expenses yourself, but it requires careful budgeting to avoid missing payments.
How to Request Your Mortgage Escrow Balance in Texas
If you need to check your escrow balance, follow these steps:
Contact your lender – Call, email, or check your online mortgage account to request an escrow balance statement.
Review your statement – Ensure the numbers align with your expected tax and insurance payments.
Ask about adjustments – If your balance is incorrect or you foresee an issue, discuss payment options with your lender.
Having access to your escrow balance helps you stay on top of your mortgage payments and avoid surprises when annual expenses come due.
Need Help with Your Mortgage?
Managing your mortgage payments and escrow balance doesn’t have to be complicated. If you’re looking for guidance on home loans, Movement Mortgage RGV is here to help. With a commitment to customer-focused service and community impact, we’re dedicated to making homeownership as smooth as possible. Contact our team today for personalized mortgage solutions that fit your needs.
Additionally, if you’re searching for the best mortgage company in Texas, working with a lender that prioritizes transparency and financial education is key. Whether you need a new mortgage or just advice on managing your escrow, reaching out to a trusted mortgage expert can make all the difference.
Final Thoughts
Yes, you can request your mortgage escrow balance in Texas. Staying informed about your escrow account helps you anticipate changes in your mortgage payment and avoid financial surprises. If you have questions or need support, reaching out to a reliable mortgage provider ensures you get the right information and solutions tailored to your homeownership journey.
At Movement Mortgage RGV, we believe in empowering homeowners with knowledge and support. Whether you’re buying, refinancing, or simply need guidance on escrow, we’re here to help every step of the way.
Need mortgage advice? Get in touch with Movement Mortgage RGV today!
