Your escrow deposit is equal to 1/12 of the total tax bills and insurance premiums we anticipate paying on your behalf during the next year. It may also include 1/12 of any escrow shortage.
Each January Guardian will perform an escrow analysis of your escrow account and adjust your monthly payment based on the amount that was paid from your escrow account during the preceding year. After the analysis is complete a new coupon book will be mailed to you. Generally, your monthly mortgage will change due to the analysis. The new payment will be effective with the March 1st payment. If the analysis shows an overage in your account, a check for the overage amount will be mailed to you by the March 1st payment. The new coupon book will also contain interest reported to the IRS on Tax Form 1098, as well as the amount of property taxes you paid for that year.
If your loan is not delinquent and your escrow account has a surplus of $50.00 or more at the time of your escrow analysis in January, Guardian will automatically send you a check for the refund of this surplus. Overage checks are mailed prior to March 1st.
A surplus in your escrow account is usually created by a reduction in your property tax bill or homeowners insurance premium.
If your account balance is less than the required balance at the time of your analysis, your escrow account will have a shortage. This shortage will automatically be spread over a 12-month period and added to your monthly escrow deposit, as part of your monthly payment. However, you do have the option of paying your escrow shortage in part or in full. If you choose this option, your monthly mortgage payment will be adjusted accordingly and a new coupon book will be supplied. Please call our Servicing Department at (972) 690-1871 or (800) 331-4799 if you have any questions about your escrow shortage.
In the event you believe our calculations are incorrect or you have access to a better estimate from a taxing authority or insurance company, please immediately contact our Servicing Department at (972) 690-1871 or (800) 331-4799. We will review your documentation and possibly complete a new escrow analysis that may reduce your monthly escrow deposit.
Please remember only your taxing authority or insurance company can change the amount of the bill we pay on your behalf from your escrow account. You must contact them directly to discuss the bill amounts.
Please contact our Servicing Department to submit your request for cancellation. Once your request is received, we will review your account and advise you of the requirements for cancellation.
A few of the requirements are:
1) No mortgage payments 30 days or more past due in the last 12 months
2) No mortgage payments 60 days or more past due in last the 24 months. Borrower-Initiated cancellation can be based on the original value. Please click here to print our guide to removing PMI. The original value of the property is determined as the lesser of either the sales price of the property securing the mortgage, as reflected in the sales contact, or the appraised value of the property at the time the subject property was purchased.
Yes, given certain circumstances. For certain conventional loans (single-family, single unit, owner-occupied homes closed after 7/29/99) PMI will be terminated at the earlier of the following:
The date that the mortgage balance is first scheduled to reach 78% of the original value of the property
The first day of the month after the date that is the mid-point of the mortgage amortization period.
The original value of the property is determined as the lesser of either the sales price of the property securing the mortgage, as reflected in the sales contact, or the appraised value of the property at the time at which the subject property was purchased.
In order to qualify for automatic cancellation, the payment due in the month before the termination date and any outstanding late charges must have been paid by the end of the month before the termination date. If this is not the case, the Private Mortgage Insurance must be cancelled later if, and when, the payments become current.