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Whether you already have a home or are considering buying one, questions are part of the process. To help, we’ve compiled some of the more common questions we get. If yours isn’t answered here or you want to talk to an expert, a KeyBank Mortgage Loan Officer can help.

Mortgage Costs

What costs and fees are typically included as part of a mortgage?

For general information on common non-state specific fees and costs that could be associated with servicing your residential mortgage, refer to our Common Costs & Fees for Residential Mortgages Chart. It is not a complete list of all fees and costs that could be assessed, and the frequency of the fees and costs will depend, among other things, on service frequency, payment status, and investor and legal requirements. For additional information, please call us at 1-800-422-2442.

Escrow Services

What's an escrow account?

An escrow account is a separate account that you fund each month as part of your total monthly payment. The funds that are collected are used to make property tax and hazard insurance payments on your behalf. Additionally, premiums due for mortgage insurance and flood insurance will also be paid from the escrow account if applicable for your loan terms.

Why am I required to have an escrow account?

Most of the time, escrow accounts are required if your down payment was less than 20%. There are benefits to having an escrow account, even if it isn’t required. It helps you manage large expenses like property taxes and insurance premiums so you don’t have to save for them separately. You make one combined mortgage and escrow payment each month and we deposit the monthly amount allocated to escrow payments into your escrow account. When the property tax and insurance bills are due, we pay them on your behalf.

How is my initial escrow amount determined?

We estimate how much your taxes and insurance will cost over the next 12 months, based on the information we have at loan closing. Please refer to your loan closing documents, taxing authority, and insurance company. Based on state law, we then determine how much your starting balance and monthly escrow payments will be. On an annual basis, we reanalyze your escrow account based on updated tax and insurance information. This may result in an adjustment to the escrow portion of your payment for the coming year.

Where can I see how much my taxes and insurance cost?

If you have enrolled in KeyBank Online Banking you can view your mortgage account transaction history to see the most recent amounts paid for your property taxes and insurance premiums. Keep in mind that these amounts reflect payments we've already made. If they don't match your most recent tax and insurance bills, it's because we haven’t paid those yet.

Do I need to send you my tax and insurance bills each time they're due?

No. We usually get them from your local property tax office and insurance company. We'll let you know if we need you to send the bills to us.

Who can I speak with to discuss escrow services?

Please call mortgage customer service at 1-800-422-2442 for more information regarding escrow services.

Annual Escrow Analysis

What’s an escrow analysis?

Each year, we review your account to make sure the escrow portion of your total monthly payment is sufficient to pay the property taxes and insurance premiums, while also maintaining the minimum balance your escrow account must have. Changes to your property taxes and insurance premiums may cause your monthly payment to change. We’ll send you an escrow statement after each analysis letting you know the outcome of the review (some exceptions apply based on your account status).

What's a shortage?

If the funds in your escrow account are projected to be below your minimum balance at the lowest point in the 12-month period, you have a shortage. This can happen if the taxes or insurance premiums for the previous 12 months were more than expected or if they're estimated to go up in the next 12 months. You have the option of paying the shortage by:

  • Paying it in full. Send a check for the full amount of the shortage to the address below to be deposited in your escrow account. Make sure to include your loan number and write “escrow shortage” on the memo line.
    • KeyBank National Association
      Attn: Escrow Servicing
      4910 Tiedeman Rd.
      Brooklyn, OH 44144
    • -OR-
  • Pay it over 12 months. No action is required by you if you choose this option. The effective date of the new monthly payment amount is identified on the third page of the Annual Escrow Disclosure Statement and will be reflected on your monthly mortgage billing statement.

We'll send you an escrow statement after each analysis that details all of this.

What’s an overage or surplus?

If your escrow account is projected to have more than the minimum balance required at its lowest point in the 12-month period, you have an overage. This happens if the taxes or insurance premiums for the previous 12 months were less than expected or if they're estimated to go down in the next 12 months. In most cases, we’ll send you a refund check for that amount. If the account is delinquent, refunds of surpluses are held until the account becomes current.

Private Mortgage Insurance

What is Private Mortgage Insurance (PMI)?

PMI is insurance that protects the creditor in the event that you default on your loan repayment obligations. It is arranged by the lender and provided by private insurance companies. PMI is usually required when you have a conventional loan and make a down payment of less than 20 percent of the home’s purchase price. If you’re refinancing with a conventional loan and your equity is less than 20 percent of the value of your home, PMI is also usually required.

How do I pay for PMI?

The payment for PMI is collected each month with your mortgage payment. The premium amount is shown in the Projected Payments section on page 1 of the Closing Disclosure that you received when you closed on your mortgage loan. For more information, call Mortgage Customer Service at 1-800-422-2442.

How do I cancel my PMI?

To learn about how you can cancel your PMI, call Mortgage Customer Service at 1-800-422-2442.

I have a Federal Housing Administration (FHA) loan, how can I cancel my Mortgage Insurance Premium (MIP)?

FHA mortgage loans assess the MIP based on the date of purchase and your current loan-to-value (LTV). To discuss your FHA loan and MIP, contact mortgage customer service at 1-800-422-2442.

Notice of Error or Information Requests

You have certain rights under Federal law related to resolving errors and requesting information about your mortgage loan. If you think KeyBank has made an error in servicing your loan, or if you would like to request information relating to the servicing of your loan, please notify us in writing of the alleged error or requested information. To do so you must follow the procedures described below:

  1. Write your request on a piece of paper separate from your statement or bill, and include:
    • Customer name, mortgage loan account number and address; and
    • The error to be researched and/or the information being requested, which relates to your mortgage loan.
  2. You must send your written request to:
    KeyBank National Association
    Attn: Client Services
    P.O. Box 5788
    Cleveland, OH 44101
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