Frequently asked questions about escrow accounts

An escrow account holds funds 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 this account to pay your tax and/or insurance bills as they are due.

The benefit of an escrow account is that you can combine all of your mortgage related expenses into one monthly payment.  Any homeowner can choose to have an escrow account.

You may be required to maintain an escrow account for a variety of reasons. Some common reasons include:

• The amount of equity in your property.
• Your property is in a High Risk flood area and the loan was originated after 1/1/16.
• Your loan had a hardship modification.
• You have an FHA or Rural Housing Loan.

Certain escrow accounts may be eligible for cancellation. Cancellation requirements may be based on the investor or insurer for your loan, but some basic requirements to cancel escrow may be:

• Your Loan-to-Value Ratio equals 80% or less. Loan-to-Value Ratio is the amount of your outstanding principal balance as compared to the original value of your home.
• You have a good payment history (No payments past 60 days late in 24 months and no payments past 30 days late in 12 months).
• Your loan originated more than two years ago (certain investors require this).

Please note:  Other requirements may apply. If you would like your escrow to be reviewed for eligibility, please fax a written request to 513-358-0621 or email Escrow.Help@53.com. Your request should include your full name, full account number, what you would like to do and your signature.

We maintain a minimum required balance (also referred to as a cushion) in your escrow account for unexpected increases in your taxes and/or insurance. 

There are a few ways you can open an escrow account:

• Open an escrow account at the time of your loan closing.
• Visit a Fifth Third banking center.
• Visit the message center within 53.com and compose a new message requesting to open an escrow account.
• Call one of our Customer Service representatives at 800-972-3030, Monday-Friday, 7am-8pm, ET. 
• Fax or email a written request, along with copies of your most recent tax or insurance bills, to 513-358-0621 or Escrow.Help@53.com.

Contact us at 800-972-3030 to speak with a Customer Service Professional. We are available to answer calls Monday-Friday 7am-8pm, ET. You can also stop by any Fifth Third banking center or visit the message center within 53.com.

At least once a year, we perform a review of your escrow account in order to determine if the escrow portion of your monthly mortgage payment is sufficient to cover the annual requirements for your real estate taxes, and/or insurance premiums. We are required under the Real Estate Settlement Procedures Act (RESPA) to disclose to you in an Annual Mortgage Escrow Statement the results of this review and its effect on your monthly mortgage payment. Occasionally, we may provide you with an interim statement in order to maintain compliance with RESPA.

Once we establish a schedule for your account, we will run your analysis and prepare your Annual Mortgage Escrow Statement, typically at the same time each year. Your statement will be mailed to you. Copies of your Annual Mortgage Statement can also be found within the Document Center on 53.com.

Your payment may still go up if your taxes or insurance increase, even if you pay the entire shortage. On your annual escrow statement, you'll see a month-by-month projection of your upcoming escrow contributions. You'll also see the timing and amount of upcoming disbursements we expect to make on your behalf.

You have two options to pay an escrow account shortage:

• Pay the shortage amount over the next 12 months. We will spread your shortage evenly and add it to your new monthly payment over the next 12 months.
• Pay the shortage amount in full. If you prefer to pay in a lump sum, send us a check for the shortage as instructed on your Annual Mortgage Escrow Statement.

A surplus is typically caused when the monthly tax and insurance payments were lower than projected. If your surplus equals $50 or more and your loan is current, we will send you a refund check. If your surplus is less than $50, we will automatically apply it to reduce your monthly escrow payment over the next 12 months.

The funds in your escrow account are used to pay things like:

• Homeowner’s insurance.
• Flood, wind or earthquake insurance.
• Mortgage Insurance.
• Property tax.

Absolutely! To make an additional payment to your escrow account:

• Visit a Fifth Third banking center.
• Log in to 53.com and make a principal payment, then message us from within 53.com to request this payment be applied to escrow.
• Call Customer Service at 800-972-3030, Monday-Friday 7am-8pm, ET.

Please note: 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.

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.

If your mortgage payment is set up with our Auto BillPayer^® payment system, any changes to your payment amount will be updated automatically. If you are using any other online payment method, you'll need to update the amount through that payment method.

The monthly escrow payment is calculated by taking the sum of all applicable bills we anticipate paying on your behalf for the next year and dividing it by 12. If your account has a shortage as determined on your Annual Mortgage Escrow Statement, this may increase the monthly payment. Refer to your most recent Annual Mortgage Escrow Statement for further explanation.

If your escrow payment has changed due to a shortage in your escrow account, you may be able to spread your shortage over a longer period of time (up to 36 months).  Please keep in mind this may cause larger shortages in the future.  To see if this is an option, please contact Customer Service at 800-972-3030, Monday-Friday 7am-8pm, ET.

If you are experiencing a financial hardship and need to speak with someone, please contact us at 866-601-6391. There is also additional counseling or assistance is also available through the U.S. Department of Housing and Urban Development (HUD). For a list of homeownership counselors or counseling organizations in your area, click here or call 800-569-4287.

Mortgage Insurance provides financial flexibility and may allow borrowers without a substantial down payment to purchase a home. It protects your lender in case you default on your mortgage loan. 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 loans.

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 equals 80% or less. (Loan-to-Value ratio is the amount of your outstanding principal balance as compared to the original value of your home.)
• You have a good payment history. (No payments past 60 days late in 24 months and no payments past 30 days late in 12 months.)

Guidelines and requirements for cancellation of PMI or MI are based on the respective investor or insurer of your loan. To determine if you are eligible to cancel your mortgage insurance, submit a written request with your full name and full account number via fax to 513-358-0621 or by emailing Escrow.Help@53.com.

Please note: For FHA loans with MIP, please refer to the “Important Notice to Homebuyers” that was provided at your loan closing.

If you have an escrow account for the payment of your taxes, we will obtain your billing information directly from your tax agency. You should retain the tax bill(s) sent to you for your records.  However, if any of these situations apply, please fax a copy of your tax bill to us at 817-826-0538:

• You live in Pennsylvania.
• You have an off cycle tax bill.
• You disputed your bill with your taxing authority.
• You have received an exemption from your taxing authority.

If you do not have an escrow account for taxes, you are responsible for paying your tax bill(s).

If you have significant changes to your tax or insurance, please call Customer Service at 800-972-3030, Monday-Friday 7am-8pm, ET to update to your account.

Your loan documents require you to maintain the appropriate insurance coverage at all times. The type of coverage required may depend on the location of the property.  For example, properties in flood zones must have flood insurance. 

If your required insurance coverage lapses or you don’t have enough coverage, Fifth Third may purchase insurance on your behalf.  Your monthly mortgage payment will be adjusted to reflect the additional charge to your escrow account.

Contact us at 800-972-3030 to speak with a Customer Service Professional. We are available to answer calls Monday-Friday 7am-8pm, ET. You can also stop by any Fifth Third banking center.