Welcome to Our Escrow Information Center

Managing your home loan should feel simple and secure — and understanding your escrow account is an important part of that. We’re here to make sure you have the information, tools, and personal support you need.

If you have questions about your Annual Escrow Analysis, tax or insurance changes, or need help deciding how to handle a shortage or surplus, just complete the Contact Form below, and your dedicated lending professional will follow up promptly to review your loan details and provide clear answers specific to your situation.

Why Escrow Is Important

Your escrow account helps ensure that your property taxes and homeowners insurance are paid on time — without any surprises. Each month, a portion of your mortgage payment is set aside to cover these important expenses, offering you convenience, consistency, and peace of mind.

Common Escrow Questions

We know escrow can sometimes be confusing. That’s why we’ve included helpful Q&A resources on this page to walk you through topics like:

Q: How can I monitor my escrow account?

A: In addition to your Annual Escrow Statement you can review your transactions by requesting an escrow statement at any time.

Q: What if I have a surplus in my escrow account?

A: If your escrow account reflects a surplus, we will issue a refund check for any surplus in excess of $50.

Q: Why did my monthly escrow payment amount increase?

A: The monthly escrow payment amount may increase because the actual balance in your escrow account is less than the amount of funds needed to pay your tax and insurance bills. This can occur as a result of:

• An increase in tax and/or insurance bills
• Actual deposit or payment from escrow is different from a previous estimate
• Tax reassessment on new construction

Q. If my monthly payment increased, did my principal and interest increase as well?

A: No, the principal and interest portion of your payment will not increase on a fixed rate loan. The increase in your monthly payment is a direct result of an increase in your taxes and/or insurance.

Q: What is a Required Escrow Balance?

A: Based on federal law, lenders may require a cushion of up to two months of the total estimated annual escrow disbursements in addition to funds needed to pay scheduled disbursements. Prairie State Bank & Trust prefers that customers maintain a one-month cushion to help cover any increases in escrow disbursements.

Q: If I choose to pay my entire shortage in full, where do I send it?

A: You can send a check (clearly labeled as a shortage payment) with your account number and address to:

Q: Will my payment amount remain the same if I pay my shortage in full?

A: Not necessarily. If you pay your shortage in full, we will recalculate your payment to reflect 1/12 of your total projected disbursements. Paying your shortage in full will minimize your payment increase. Your payment amount may still change if your tax or insurance amount increased in the last year.

Q:How can I prevent an increase in my monthly payment?

A: It may not be wholly possible if your taxes and/or insurance increase. But you can help minimize the amount by which this changes:

• Monitor the cost of your insurance closely.
• Ensure you have taken advantage of all savings options for real estate taxes (owner-occupied exemption, property improvement freeze, senior freeze, etc.).
• Address changes in cost early. Elect to increase your escrow payment by a small amount sooner so you don’t have to adjust by a large amount later. We will be happy to help you with that. If we notify you of an increase in your taxes and/or insurance, reach out to your Loan Officer to find out your options and to voluntarily increase your payment to ensure you do not have a significant escrow shortage.

If your total monthly payment is increasing, please read this important information:

Increases in your monthly mortgage payment amount as a result of an escrow analysis are usually due to increases in the property taxes and/or homeowner's insurance. If you have questions about an increase in your property taxes or homeowner's insurance premiums, please contact your local taxing authority or insurance agent. They are the best source to explain the increases.

Understanding Escrow

Protecting your home & simplifying your payments. 

Click here for a simple guide to how escrow works - and why it helps you. 

Escrow Infographic

We’re here to help every step of the way.
Whether you prefer to fill out the form below, give us a call at 1-800-597-2977, or stop by any of our branches, our team is always ready to assist you.