MORTGAGE
In addition to your monthly principal and interest payments, most lenders require that you pay your property taxes and home insurance premiums to the mortgage servicer as part of your monthly payment. Lenders or mortgage servicers hold the funds collected for this purpose in a special account, called an 'escrow account', from which they disburse the funds on your behalf: To the New York City Department of Finance (DOF) Property taxes and your insurance company premiums
Federal law requires the servicer to provide you with an accounting of your escrow account on an annual basis. The statement will show whether there is a surplus or deficit in your escrow account. A decrease may result from an increase in property taxes levied by the city or an increase in your insurance premium.
How do I know my mortgage loan balance?
The servicer must provide you with a monthly mortgage statement that shows the amount owed for the billing period, how much is going toward principal, interest and escrow and fees, if any. The statement shows the outstanding balance on your loan, and, if applicable, any past due amounts, as well as how much is needed to bring your account current.
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