Transcript: Why Your Payment Increases After You Pay an Escrow Shortage

On screen:

The chase logo swipes onscreen with text: Why your payment increases after you pay an escrow shortage

Narrator:

After seeing a shortage on your escrow analysis, you may wonder: If I pay my shortage, does my monthly payment stay the same?

The answer is no—your payment will still change, even if you pay the shortage. Let me explain.

Each year, we review your escrow account to make sure there's enough money to pay your property taxes and insurance.

If those costs go up, we pay the bills for you—even if your escrow account doesn't have enough to cover the increase.

Paying the escrow shortage reimburses us for what we paid on your behalf.

But here's the key: Because those costs are now higher, we now need to collect more each month to cover future bills.

Your new monthly payment reflects these increased costs—whether it’s taxes, insurance, or a required cushion to help prevent future shortages.

That is why even after you pay the shortage, the escrow part of your payment remains higher.

Paying the shortage settles last year's difference.

The new payment amount helps cover the increased costs going forward.

On screen:

Chase logo swipes onscreen. Text says: For specific account details, please log into Chase MyHome® or contact us directly

Next to the Equal Housing Opportunity logo is disclosure text that says: All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply.

Narrator:

If you have questions or want to review your escrow details, log into Chase MyHome® or reach out—we're here to help!