Escrow FAQs

An escrow account is a special savings account held at GCEFCU to pay items related to your home such as insurance, property taxes, and hazard insurance. Each month a portion of your mortgage payment is set aside to pay for the items listed in your escrow.

GCEFCU calculates the amount for your monthly escrow payment by totaling your annual premiums then dividing that amount by 12.

Every GCEFCU member with an escrow is required to have 2 months of reserves in their escrow account as a cushion. This helps to prevent you from experiencing a shortage if your premiums increase or you fall behind on your payment.

If your escrow account has a shortage, this means that there are not enough funds in your account to cover your annual premiums. This can be caused by unexpected increases to your taxes or premiums.

If your escrow account has a deficiency, this means that there is a negative balance in your escrow account. This occurs when GCEFCU advances funds on your behalf to pay for your taxes or premiums if you do not have enough cushion. This can be caused by unexpected increases to your taxes or premiums.

If your escrow account has a surplus, you will receive the excess amount of funds in your GCEFCU primary savings account. Surpluses occur when your taxes or premiums are less than previously calculated.