(DESCRIPTION) Text, U.S. Bank Escrow (SPEECH) SPEAKER: We know escrow accounts can be confusing. That's why U.S. Bank is here to help. (DESCRIPTION) Text, What is escrow and how does it work? In an illustration, a coin drops into a piggy bank. (SPEECH) After the closing of your loan, U.S. Bank sets up an account in your name where tax and insurance premium payments are set aside until they're due. This is called an escrow account. (DESCRIPTION) Dollar signs move from a payment coupon to the piggy bank, labeled Escrow account, and a house, labeled, Principal and interest (SPEECH) With each monthly mortgage payment, a portion is set aside for escrow. This allows the escrow account to build until taxes and insurance premiums are due. (DESCRIPTION) Dollar signs now move from a piggy bank to a government building, labeled Taxes, and a building with an umbrella over it, labeled, Insurance. (SPEECH) U.S. Bank then pays the taxes and insurance on your behalf. But how does U.S. Bank know how much to put away per month? (DESCRIPTION) A magnifying glass moves over a document. (SPEECH) We conduct a periodic review called an escrow analysis. We use information received from your local taxing authority and your insurance company to estimate the next year's obligations. (DESCRIPTION) Text, Taxes + Insurance + Minimum balance (SPEECH) A minimum balance may be included to cover any changes in those amounts. The total amount is then divided into 12 months and added to your principal and interest for an updated monthly mortgage payment. (DESCRIPTION) A scale with Overage on one side, Shortage on the other (SPEECH) However, even with a minimum balance in place, sometimes significant tax or insurance changes can occur. This can create an overage or shortage in the escrow account. Overages occur when your property taxes or insurance premiums are lower than anticipated. Also, removing your private mortgage insurance may cause an overage. (DESCRIPTION) Currency slides into a digital device. (SPEECH) If there is an overage of $50 or more in the account, the total amount will be refunded to you. (DESCRIPTION) A coin slides into a piggy bank. (SPEECH) Any overage less than $50 will be credited back to your escrow account. (DESCRIPTION) A house on rows of wavy lines. (SPEECH) Shortages typically occur when property taxes or insurance premiums increase or when new items are added. (DESCRIPTION) Lines from a certificate drop into 12 months. (SPEECH) If there is a shortage in the account, you can pay the amount in full or have the amount added to your monthly payments. (DESCRIPTION) Text, Online, Mail, Call (SPEECH) Though not required, you have options to repay a shortage in full. You can find more about escrow on your statement, or check out our FAQ page for more detailed information. (DESCRIPTION) usbankhomemortage.com (SPEECH) Thank you for being a U.S. Bank customer. (DESCRIPTION) Equal Housing Lender. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Visit usbank.com to learn more about U.S. Bank products and services. Mortgage and home equity products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC. Copyright 2022 U.S. Bank.