Changes happen to your escrow account for different reasons, and it can be confusing even for the seasoned homeowner. So, if you’ve been wondering what to do when changes happen to your escrow account, keep reading!

ONE. If you decide to change your insurance providers, please let your banker/loan officer know. Once they approve the new insurance policy, you will be able to cancel your previous insurance.

TWO. Insurance refund checks should be deposited into your escrow account to avoid shortages. The deposit should be an “Escrow Only” payment.

• NOTE: Important information to include with your deposit: Your Name, Address, Loan #, and a note saying, “Escrow Only Payment.”
• If you’re an FGB Customer, deposits can be made at any FGB branch by mailing to the following address:

First Guaranty Bank
Attn: Escrow Dept.
400 East Thomas Street
Hammond, LA 70401

THREE. An escrow analysis will be run annually to determine if your escrow account has a surplus or a shortage. If there is a shortage, you will have a few options:

• You will be given two months to cover the shortage by making an escrow only payment, then a new escrow analysis will be run to adjust your new monthly payment.

-OR-

• Your bank/mortgage company can increase your monthly payment over a 12-month period to cover the shortage.
• In the event of an overage in your escrow account, a refund check will be mailed to you along with your escrow analysis.
• If your payment changes and you are set up on Auto Draft, you’ll want to update your auto draft form to “As Billed.”

FOUR. Expect a property tax bill at the end of each calendar year from your tax assessor’s office. This bill will typically be for your records only but check with your bank/mortgage company to be sure.

FIVE. Mortgage payoff statements will include all remaining escrow balances. This shouldn’t come to you in a separate check.

If you have any questions about your taxes, insurances, or changes in your monthly payment, reach out to your FGB banker/mortgage loan originator today!

First Guaranty Bank is an Equal Housing Lender. Member FDIC. NMLS #643809.