Escrow FAQs

What is an escrow account?

An escrow account is an account affiliated with a loan that we provide for you to pay your property taxes and/or insurance. With an escrow account, you set aside a portion of these expenses every month making it easier for you to budget.

What is escrow analysis?

Once a year, we are required by law to review your escrow account to determine whether a surplus, shortage or deficiency exists. As a part of this review you receive an Annual Escrow Analysis Disclosure Statement. The statement includes the history of the actual activity in your account during the previous year as well as the expected activity for the next year. The analysis typically results in an adjustment to your loan payment.


What if there is a surplus in my escrow account?

If your account has an overage greater than $50.00, it will be refunded to you in the form of a check within 30 days from the Annual Escrow Analysis Disclosure Statement print date. If it is less than $50.00, we will distribute this overage in a reduced escrow payment over the next 12 months.

What is the interest rate on my escrow account?

The Department of Financial Institutions, Division of Banking, calculates the interest rate required to be paid on escrow accounts under Section 138.052 (5), Stats. The rate as of January 2023 is .11%.


What is an escrow cushion or reserve?

A cushion or reserve means funds that a servicer may require a borrower to pay into an escrow account to cover unanticipated disbursements or disbursements made before the borrower’s payments are available in the account.


What causes an escrow shortage?

If there is not enough money in your account, you have a shortage and your monthly escrow payment may increase. Some common reasons for a shortage include, but are not limited to, an increase in taxes and/or insurance premiums, assessments added to your tax bill, and changes to your insurance policy. See the statement for details.

How to contact Loan Services at IncredibleBank

By mail at P.O. Box 777, Wausau, WI 54402-0777

By phone at (888) 842-0221

By email at