An escrow analysis is performed each year to ensure that your monthly escrow payment will be sufficient to pay the annual property taxes, insurances, and PMI (private mortgage insurance) as they become due. The escrow analysis identifies any overages or shortages that may occur in the escrow account after disbursement of taxes and insurance. Then subsequently, the escrow portion of your total monthly mortgage payment is adjusted based on an increase or decrease in the amount of the item(s) paid out.
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