Video transcript: Reading your Chase escrow statement

(Soft music plays)

Narrator:

Hello. At least once a year we complete a review of your mortgage escrow account to help ensure there will be enough money to cover your property tax and insurance payments.

On screen:

Hello. Mortgage Escrow Account. Tax and Insurance.

Narrator:

Here's what to expect when you see your escrow account statement. There are two steps in your analysis that can affect the escrow account included in your monthly mortgage payment.

On screen:

Your Annual Escrow Account Statement. 2 steps to review your account.

Narrator:

First, we determine your new monthly escrow deposit.

On screen:

Step 1.

On screen:

A sample escrow statement appears, showing Annual Escrow Breakdown. It shows the expected payment of Homeowners Insurance at $2000, with the current payment expectation increased to $2030 dollars. It shows the expected payment of Property Tax at $4000, with the current payment expectation increased to $4090 dollars.

Narrator:

This monthly deposit equals the total annual tax plus insurance expense we expect to pay for you next year, based on what we paid last year.

On screen:

A sample escrow statement appears, showing Monthly Payment Breakdown. It shows Principal and Interest remaining the same at $1000 dollars, Escrow Account Deposit increasing from $500 to $510, and a Shortage Amount of $55. The current Total Monthly Payment is listed as $1,500 - with the new payment increasing to $1,565.

Narrator:

We divide that annual expense by 12 to get your monthly deposit amount. Then, step 2, we balance your escrow account.

On screen:

Step 2.

On screen:

A sample escrow statement appears, showing escrow account activity for the review period, including "Activity," "Estimated activity," and "Actual Activity."

Narrator:

On the second page of your escrow statement, the table at the top shows your actual account activity over the past 12 months. The next table shows your expected account activity over the next 12 months, including your new monthly escrow deposit from step one.

On screen:

A sample escrow statement appears, showing estimated escrow account activity over the next 12 months.

Narrator:

The month with the lowest expected balance is highlighted. In most cases, your lowest balance must equal at least two months deposit to ensure you have enough money in your account for upcoming tax and insurance payments. If the lowest estimate is lower than the required minimum, your account has a shortage and you'll need additional funds in your account to cover the difference.

On screen:

The sample escrow Monthly Payment Breakdown appears, with the shortage amount of $55 highlighted.

Narrator:

We'll automatically spread any shortage across your next 12 payments, or you can choose to pay all or part of the shortage upfront to help balance your escrow account. If your expected lowest balance is more than $50 higher than required, we'll mail you a check for the difference. Your escrow account is set up to provide you peace of mind by helping you budget for your taxes and insurance. Any payment changes won't take effect for at least a month after your escrow analysis is complete.

On screen:

A sample escrow statement appears, showing escrow shortage payment options, including:

Option 1: 12-month spread, meaning no action required as the shortage amount is spread out evenly across next year's payments.

Option 2: One-time payment, meaning paying the full shortage now.

Option 3: Partial payment, meaning paying part of the shortage to lower the increase on the monthly payments.

Narrator:

And during that time, you can pay part or all of any additional shortage amount needed to balance your account. You can learn more about escrow or sign in to view your escrow account and manage your payment at chase.com/escrow.

Logo:

The Chase octagon symbol.

On screen:

Chase. Make More of What's Yours (trademark.) chase.com/escrow.