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 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.

Escrow Analysis - FAQs

Q: 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 analysis?

An escrow analysis is an annual review of your escrow account to ensure there are sufficient funds to cover insurance premiums, property taxes, and other related expenses. This process helps adjust your monthly mortgage payments based on the projected costs for the upcoming year.

When is the escrow analysis performed?

For loans with Incrediblebank, the annual escrow analysis is typically performed in March for the May payment.

What happens if there is a surplus in my escrow account?

If there is a surplus of greater than $50.00 in your escrow account, the excess amount will be refunded to you. Surplus checks are usually mailed out within 30 days of the escrow analysis statement date. If the surplus is less than $50.00, we will distribute this overage by way of a reduced escrow payment over the next 12 months.

What if there is a shortage and/or deficiency in my escrow account?

If there is a shortage and/or deficiency in your account, you will need to cover the shortfall. You can either voluntarily elect to pay the shortage and/or deficiency amount in full or have it spread out over a period of months, which will increase your monthly mortgage payment.

What is the difference between a shortage and deficiency?

A shortage occurs when the escrow balance is positive, but less than the required target balance needed to cover upcoming tax and insurance disbursements. A deficiency exists when the escrow account balance is negative – meaning more funds were disbursed than what was in the account. You can have both a shortage and a deficiency or just a shortage.

What is the interest rate on my escrow account?

The Wisconsin Department of Financial Institutions, Division of Banking, calculates the interest rate required to be paid on escrow accounts under Section 138.052 (5), Stats. To see the current rate, visit DFI Notice of Interest Rate on Escrow Accounts.

What should I do if I have questions about my escrow analysis statement?

If you have any questions or notice any discrepancies in your escrow analysis statement, please contact us for assistance.

By phone at 888-842-0221
By email at info@incrediblebank.com

If I choose to do so, how can I pay my shortage payment?

You can pay the shortage or deficiency by using these methods:

Mail a check to: IncredibleBank Attn: Escrow PO BOX 777 Wausau, WI 54402-0777
Pay by check over the phone by calling 888-842-0221. (This requires a checking account and routing number).
Transfer funds from your IncredibleBank DDA. Please call the contact center at 888-842-0221.

Is there a deadline to pay my shortage?

If you choose to do so, please make your payment by April 15th to ensure your May statement is correct.