New Payment Effective Date
Your monthly payment may have changed. If your escrow (any taxes and/or insurance that your mortgage servicer pays for you) amount is different, it will affect how much you are required to pay each month.
Shortage = determined based on the amount required to be in the escrow account as of the effective date of the new analysis and the actual escrow account amount as of the effective date. The shortage may be a result of an increase in your taxes and/or insurance.
You have two options for paying the shortage:
- You can use the payment coupon on the bottom of the letter to send payment in full. Your monthly payment amount if the shortage is paid in full is listed in section 4.
- It can be added to your payment for the next 12 months. In this case, you would pay the new monthly payment amount in section 1.
Overage = determined based on the amount required to be in the escrow account as of the effective date of the new analysis and the actual amount as of the effective date. The overage may be a result of a decrease in your taxes and/or insurance.
- If it is more than $50 and your account is current, you will receive a check for the overage amount.
- If it is under $50 it will be divided over 12 months to reduce this year's escrow payments.
