Why did my mortgage escrow payment change?

calendar with words pay mortgageEscrow accounts are used to save for estimated future homeowner’s insurance and real estate tax payments.

These escrow accounts are analyzed annually to see if the monthly payment amount is too high or too low to cover these expenses for the next 12 months.

Based on the balance in the account and the estimated cost of insurance and property taxes in the upcoming year, the lender will change the monthly payment as required.

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