Help CenterEscrow, Taxes, & Insurance

Escrow, Taxes, & Insurance

Escrow Basics

Escrow Account DefinitionEscrow account overview, including when it’s required and how it’s used Minimum Required (Escrow) BalanceDefinition and amount of minimum required balance in escrow Mortgage Insurance (also PMI or MIP)What is mortgage insurance (PMI/MIP) and how to request removal Removing Your Escrow AccountDescribes what it means to remove escrow and provides information on how to request removal Adding an Escrow Account to Your Mortgage PaymentDescribes the process of adding an escrow account to your mortgage

Escrow Analysis

Escrow Analysis & Escrow Review StatementExplains the escrow analysis process and resulting statement Escrow Shortage & SurplusDescribes escrow shortage & surplus and how they are calculated

Property Taxes

Issues with Your Property TaxesHow to notify USAA of property tax issues Sending Property Tax BillsWhen property tax bills need to be sent to USAA Real Estate Tax ExemptionProvides definition and types of real estate tax exemptions New Construction Property TaxesWhat to know about property taxes for new construction California Supplemental TaxesWhen a supplemental tax bill may be issued in California Wisconsin Tax Payment OptionsImportant tax option information for properties in Wisconsin

Insurance

Insurance RequirementsLists requirements for insurance amount, carrier, and types Advising USAA of Insurance Policy ChangesWhat, when, and how to send updates if your insurance policy changes Insurance Claim Check ProcessWhat happens when you receive an insurance claim check Mortgage Insurance (also PMI or MIP)What is mortgage insurance (PMI/MIP) and how to request removal

Frequently Asked Questions

Depending on the type of insurance, you will need enough to cover the lower of either the replacement cost of the property or the remaining principal balance on your loan.

Example If your unpaid principal balance (UPB) is $80,000 but the replacement cost is $120,000, you will need to carry a minimum insurance of $80,000 total.

If you obtain a new insurance policy prior to expiration of your existing policy and we paid the new policy from your escrow account, you will have an escrow account shortage because of the new insurance disbursement.

With the cancellation of your prior policy, you should receive a refund on the remaining premium. To address the escrow shortage, please remit the refund from your prior insurance carrier to us for deposit in your escrow account.

When your taxes and/or insurance increase from the amounts paid last year, the escrow portion of your monthly payment will also increase to cover the higher disbursements. The escrow shortage is the amount needed to ensure the escrow account is fully funded in the upcoming year per the requirements under the loan documents, as well as state/federal law.

Note: As your property taxes and insurance premiums increase each year, the amount needed to fund your escrow account may go up each year as well.

If you receive an insurance claim check, visit www.insuranceclaimcheck.com to get information and next steps.

If, on the off chance, we pay the taxes late, we’ll cover any penalty and interest amount for the late payment by depositing funds into your escrow account.

An escrow account is where funds are held to pay property tax and insurance bills on your behalf. If your loan is escrowed, a part of your mortgage payment goes into your escrow account every month.

We analyze your escrow account around the same time each year depending on the state where your property is located. Read more

If your loan is escrowed, we’ll pay the taxes around 10 business days prior to the date penalty and interest amounts will begin to accrue. We’ll let you know when that happens.

An escrow analysis can raise or lower your monthly escrow payment for the upcoming year due to changes in your tax and insurance amounts. Read more