An escrow account acts like a savings account for the payment of your taxes and/or insurance. As each mortgage payment is made, a portion of your payment is deposited into the escrow account. Fifth Third will use funds from that account to pay your tax and/or insurance bills as they are due.
An escrow account is typically required on a primary residence if your down payment was less than 20%, but any homeowner can choose to have an escrow account. The benefit of an escrow account is that you can combine all of your mortgage related expenses into one monthly payment.
An escrow account can be opened at closing, or by calling 800-972-3030.
Fifth Third requires a minimum balance in your escrow account equal to two monthly escrow payments, or what your state of residence requires. These funds provide a cushion if your insurance or tax bills increase.
Call Customer Service at 800-972-3030 or stop by any Fifth Third banking center.
An escrow account, on a primary residence, can be canceled if:
Your Loan-to-Value Ratio (the amount of your outstanding principal balance as compared to the value of your home) equals 80% or less.
Your payments are current for the past year.
Please note: FHA, VA and correspondent loans require the use of an escrow account. These loans are federally required to have the servicer monitor your account.
Escrow Payments
The funds in your escrow account are used to pay:
Homeowner’s Insurance
Property Tax
Other Forms of Insurance as applicable, such as Flood, Mortgage, Wind/Earthquake
The monthly escrow payment is calculated by taking the sum of all applicable bills and dividing this by 12. For example, if your insurance for the year was $600 and property tax was $1400, your monthly payment would equate to $166.67.
If you have your mortgage payments set up with our Auto BillPayer payment system, the amount will automatically update upon any changes. If you are using any other payment methods, you'll need to update the amount.
Your escrow payments are included in your monthly mortgage payment. To ensure timely payment, please follow the information provided on your monthly mortgage billing statement.
Absolutely! It is possible to make an additional payment to your escrow account. This may be an option for you if you have seen an increase in your tax or insurance payment throughout the year and wish to avoid a shortage at the time of your analysis. If you want to make an extra payment towards your escrow account, please follow one of the following methods:
Call Customer Service at 800-972-3030.
Stop by any Fifth Third banking center.
To avoid confusion, do not send additional escrow payments with your monthly mortgage payment. It is possible for these funds to be applied as a payment against your principal rather than to the escrow account.
Mortgage Insurance
Mortgage insurance is insurance placed on a mortgage that allows for a smaller down payment to be applied to the loan. Mortgage insurance can be removed once you meet all necessary requirements. There are two common types of mortgage insurance:
Private Mortgage Insurance (PMI): PMI is the most common form of mortgage insurance, especially on Freddie Mac and Fannie Mae Loans.
Mortgage Insurance Premium (MIP): Mortgage Insurance Premiums are common on FHA and Ginnie Mae loans.
Your Mortgage Insurance Disclosure (part of your closing documents) will provide you with the comprehensive list of what is needed to cancel your loan’s mortgage insurance.
PMI, or Private Mortgage Insurance, is a type of insurance that provides borrowers with the option of putting less than 20% down on their mortgages at closing. This insurance provides financial flexibility and may allow borrowers without a substantial down payment to purchase a home.
To determine if you can cancel your PMI, review the requirements to cancel your mortgage insurance outlined on your Mortgage Insurance Disclosure. For many loans, the PMI can be canceled if:
Your Loan-to-Value Ratio (the amount of your outstanding principal balance as compared to the value of your home) equals 80% or less. In other words, you must have at least 20% equity in the property value to be eligible.
Your payments are current for the past year.
These guidelines don't apply to every loan. Call Customer Service at 800-972-3030 to review your PMI cancellation requirements.
The type of mortgaged property will determine the requirements to cancel your PMI.
For a single-family primary residence, you must have at least 20% equity ownership of the property (your loan-to-value ratio equals 80% or less) and be current on payments for the past year.
For an investment property (e.g. a rental unit) or a non-single family primary residence,you must have at least 35% equity ownership of the property (your loan-to-value ratio equals 65% or less) and be current on your payments for the past year.
You can make a payment towards your principal to lower your loan-to-value ratio. Call Customer Service at 800-972-3030 or stop by a Fifth Third banking center to make a payment. FHA, VA and correspondent loans may have different requirements for PMI coverage. Review your Mortgage Insurance Disclosure for your loan's specific requirements.
Annual Escrow Analysis
An escrow account overage is caused when the monthly tax and insurance payments were lower than projected. If your overage equals $50 or more, Fifth Third is required to send you a refund via check. In some cases, you may have an overage in the account even though the tax or insurance projections have increased for the following year. You have the option to send the overage check back to us and have it reapplied to your escrow account. If your overage is less than $50, the amount will be applied to your escrow account to assist with the next year’s payments.
You have three options to pay an escrow account shortage:
You can pay in full. Send in a check as instructed on your annual escrow analysis or contact Customer Service at 800-972-3030.
You can pay a portion of the shortage up front, then spread the balance of the shortage over your 12 monthly mortgage payments. Send in a check as instructed on your annual escrow analysis or call Customer Service at 800-972-3030.
You can pay the shortage over the next 12 months. The balance of the shortage will be spread over 12 months and added to your monthly mortgage payment.
The full instructions for how to pay your shortage will be provided on your annual escrow analysis, if applicable.
The date of your annual analysis is based on the state where your property is located, but it will run in the same month of every year. If there are changes to this schedule that affect your annual analysis, you will receive a notification.
It is possible that we have not received a notification of a decrease in your payments. Call Customer Service at 800-972-3030 and we will assist you in preparing the proper documentation to review your monthly payment.
Tax & Insurance
If you have an escrow account for payment of your taxes, your tax agency will send a copy of your tax bill directly to Fifth Third. You should retain the tax bill for your records. If you live in Pennsylvania, please forward your tax bill to: Fifth Third Bank, PO Box 961221, Fort Worth, TX 76161-0221. Or, you can fax it to 817-826-0538. If you receive a tax bill marked “COPY” or “FOR YOUR INFORMATION,” you do not need to send it to us. If you do not escrow for taxes, you are responsible for paying your tax bill.
Fifth Third will begin to collect funds in your escrow account even if your next payments are a year away; this is to ensure there is no shortage on your escrow account.
You can locate the expected expenses for the next year on your annual escrow analysis. This document will be mailed to you annually and is always available in the statement section of your account on 53.com.
All mortgage lenders require that you have homeowner’s insurance. As a homeowner and in accordance with your loan documentation, you need to maintain adequate homeowner’s coverage at all times.
If your insurance coverage lapses or you don’t have enough coverage, Fifth Third is required to purchase insurance on your behalf. This is done so your home can be repaired or rebuilt if it is damaged. Please note that this type of insurance does not cover your personal belongings and you will want to discuss your insurance needs with your insurance company as soon as possible.
Call Customer Service at 800-972-3030 with any necessary updates to your account.
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