Escrow Accounts

This results in a surplus. In case of a surplus, you typically receive a refund check if the surplus amount is $50 or more, and the escrow portion of your monthly mortgage payment is adjusted according to your new escrow bills. Details of these changes are sent to you in your Escrow Account Disclosure Statement. Your loan must be current when the escrow analysis is performed to receive a credit or refund of any surplus funds.

If your escrow account has a surplus amount of $50 or more, you typically receive a refund to the mailing address* on file within 30 days of receiving the disclosure. If you have additional questions, please email requests to [email protected] or [email protected] for commercial loans.

*If your mailing address has recently changed, please update this as soon as possible.

This results in a shortage. We spread your shortage over the next 12 months in addition to adjusting the escrow portion of your monthly payment amount, or you can choose to pay the shortage in full by the date listed in the Escrow Analysis Disclosure Statement. Please include the coupon from the statement when mailing a check to A+FCU.

Yes, it can. Even if you pay the shortage resulting from last year’s escrow payments, an increase in your projected tax bill or insurance premiums for the coming year could result in your payment increasing.

If you have questions about your property tax bill, property appraisal, tax rates, etc., contact your local taxing authority.

Local taxing units offer partial and total exemptions, such as those listed here, from a qualifying property’s appraised value.

Contact your local taxing authority to inquire about qualifying and applying for exemptions that could be used to reduce your property’s taxable value.

A+FCU completes the escrow analysis in January each year. Members can expect to receive their Annual Escrow Disclosure Statement by mail, typically during the first week of January.

If your payment changes after the annual escrow analysis is conducted, you’ll need to update previously established automatic payments that are not initiated directly by A+FCU.

Reminders:

• If your payment has changed and you make your payments through a bill pay service, please be sure to update the payment amount.
• If your payment is set up on auto-transfer (also known as a recurring transfer) through A+ Online Banking, please make sure to update the payment amount.
• If your payment is set up directly with A+FCU, then no further action is required. The payment will automatically adjust.

These are the two options available regarding the mortgage payment.

Option 1: Gives the option to cover any shortage/deficiency, if applicable. If option one is chosen, please make sure to include the coupon on the back of the Escrow Account Disclosure Statement. Your shortage/deficiency payment will be deposited to your escrow account and the calculated monthly payment will be adjusted accordingly.

Option 2: Does not require any action. You will pay the new total monthly payment listed on your Escrow Statement.

Federal law requires that we analyze your account each year to determine whether the current balance and the amount of money we collect each month is appropriate based on the bills that we expect to pay over the next 12 months.

This section contains a projection of escrow activity for the coming year. Projections include monthly payments into the escrow account and escrow disbursements out of the account based on last year’s activity. Please note that if Property Taxes or Insurance Premiums increase during the year, your escrow balance may reflect a shortage the following year.

If applicable, this section reflects your new total monthly mortgage payment.

The effective date represents the starting due date of the new total monthly payment.

The statement date reflects the date we ran the analysis prior to the due date for your projected mortgage payment for the next 12 months.

Notice: Please contact us if you know of any bills that should be added to or removed from this section, or if the amounts and/or due dates are incorrect.

This section contains a complete breakdown of your New Monthly Escrow Payment.

Low Balance – Your Mortgage Allows The Lowest Balance Of Your Escrow Account To Be No More Than 1/6th Of The Total Disbursements

The low point equals the lowest monthly escrow balance during the 12-month projection. An escrow balance is projected for a 12-month period, assuming that A+FCU receives scheduled payments and makes scheduled disbursements (pay property taxes, insurance premiums, etc.).

Starting Balance Needed To Ensure Low Point

The starting balance needed to ensure the account has enough funds to cover all property taxes, insurance premiums, etc.

Escrow Account Surplus, Shortage, Or Deficiency To Be Spread In (Surplus In Excess Of $50)

• A surplus is the portion of the projected escrow balance that is greater than the cushion amount.
• A shortage is the amount by which the escrow balance falls short of the cushion amount.
• A deficiency is the amount by which the balance goes below zero. When the account has a deficiency, it will also have a shortage.

A surplus in the amount of $50 or more is refunded in the form of a check sent via mail, while surplus amounts under $50 are returned by lowering the monthly escrow payment due.

Example: $48 surplus divided by 12 months = $4 decrease to the monthly escrow portion

Surplus, Shortage, Or Deficiency Spread Months

Monthly payment amount reduced or added to the monthly escrow based on the surplus, shortage, or deficiency divided over 12 months.

Example: $1,200 shortage divided by 12 months = $100 added to the monthly escrow portion

Estimated Escrow Disbursements

Total estimated amount of any tax, insurance, and any other escrowed items anticipated to be dispersed from the escrow account.

Escrow Disbursement Spread Months

Number of months the escrow disbursement(s) will be divided by. Disbursements are divided by 12 months and added to the monthly payment.

Example: $5,100 for tax, insurance, etc. divided by 12 months = $425 per month

Escrow Disbursements Payment Amount

Monthly payment amount of the total estimated escrow disbursements.

Example: $5,100 for tax, insurance, etc. divided by 12 months = $425 per month

Current Payment Amount. This is the principal and interest portion of your mortgage payment. This amount does not change throughout the life of the loan unless your loan is an Adjustable Rate Mortgage.

Estimated Escrow Payment Amount. The new total escrow portion of your monthly mortgage payment. This amount includes any taxes, insurance, and/or other payments needed.

Total New Payment Amount. The new monthly payment which is composed of principal and interest, the escrow collection for taxes and insurance and any additional collection(s) that may be required to cover a shortage/deficiency in the escrow account.

Reminders:

• If your payment has changed and you make your payments through a bill pay service, please be sure to update the payment amount.
• If your payment is set up on auto-transfer (also known as a recurring transfer) through A+ Online Banking, please make sure to update the payment amount.
• If your payment is set up directly with A+FCU, then no further action is required. The payment will automatically adjust.

Use this coupon to make the shortage/deficiency payment. This is the coupon for Option 1 on page 1.

This section shows monthly transaction details of payments to and disbursements from your escrow account since the last escrow analysis calculation date.

This section shows the total monthly mortgage payment from the last computation period. There is also a breakdown of the total monthly payment to show what amount went to principal and interest and the amount applied to escrow.

Note: If your mortgage recently transferred to us from another servicer, the projected deposits and payments from your previous statement may not be available.