What Is Escrow Balance on a Mortgage Statement?
Published: Nov 5, 2026
By: Jason H.
By Jason Holderness, cofounder of Properteer. Updated 5 November 2026.
Who made this page: Properteer made it. The facts about escrow come from the federal rule and from three lenders' own pages, read on 5 November 2026. We are not a lender and this is not financial advice. Your servicer's statement is the final word on your account.
Quick answer
Your escrow balance is the money your mortgage servicer holds in your escrow account right now. It is set aside to pay your property tax and homeowners insurance when they are due. It usually can't be withdrawn. Your yearly escrow statement shows the ending balance, what went in, and what went out.
How we evaluated
We read the federal rule (Regulation X) on the CFPB site and the escrow pages of Wells Fargo, Chase and Pennymac. For each one we looked for: what the balance is for, what it does not pay, whether you can take money out, how the cushion works, and what happens to extra money.
What the sources say
| What it says about the balance | Cushion | Extra money (surplus) | |
|---|---|---|---|
| Wells Fargo | The money in the account is "called the escrow balance." It pays property tax and homeowners insurance. It typically isn't available for withdrawal, though the funds generally belong to the homeowner | The lender may set a minimum balance as a cushion. No amount stated on the page we read | Usually refunded with the escrow statement if the account is in good standing |
| Chase | Chase adds up the tax and insurance it paid over the past 12 months and divides by 12 to get your projected monthly escrow payment | The required minimum balance is typically two months of escrow payments | The page we read does not explain how a surplus is handled |
| Pennymac | Escrow generally doesn't pay supplemental tax bills, HOA fees or utilities | Under HUD guidelines, a lender can hold no more than two months of payments as a cushion | A surplus over $50 is typically refunded. Less than $50 is usually credited toward future payments |
| CFPB, Regulation X (12 CFR 1024.17) | The yearly statement must show the ending escrow balance and the totals paid in and out | The cushion can be no more than one-sixth of estimated yearly escrow payments. That is about two months | A surplus of $50 or more must be refunded within 30 days of the analysis, if you are current on payments |
What is in your escrow balance
Each month, part of your house payment goes into the account. Your servicer pays your property tax and homeowners insurance from it. The balance is what is left in the account today.
- Not covered: HOA fees, some supplemental tax bills and utilities usually are not paid from escrow (Wells Fargo, Pennymac).
- Withdrawing: the balance typically isn't available for withdrawal (Wells Fargo).
- When you sell or pay off the loan: the rest is refunded, typically within 15 to 20 days of the payoff (Pennymac).
Words next to the balance
Regulation X sets a target balance. Then:
- Surplus: the balance is above the target.
- Shortage: the balance is below the target when your servicer checks.
- Deficiency: the balance is negative.
Your servicer must check the account when it opens and at the end of each year. The yearly statement must also say how a surplus is handled and how a shortage or deficiency will be repaid.
How the monthly number is set
Chase gives the clearest steps: add up last year's tax and insurance, divide by 12, and adjust so the balance stays above the minimum. If tax or insurance goes up, the next yearly check can show a shortage and your payment can change.
See the whole cost of the house
Tax and insurance in escrow are only part of what a house costs each month. Properteer's Finances view puts mortgage, tax, insurance, upkeep and replacement savings into one monthly number. Its free TrueCost Mortgage Calculator shows the monthly costs most mortgage calculators leave out. Our earlier guide, Your Escrow Account Explained, covers the parts of an escrow account.
Properteer does not show your actual escrow balance. That number comes from your servicer's statement or online account.
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FAQ
What is escrow balance on a mortgage statement? It is the money currently in the escrow account your servicer holds, set aside to pay property tax and insurance (Wells Fargo). Regulation X says the yearly statement must show the ending balance (CFPB).
What do shortage, surplus and deficiency mean? Surplus: the balance is above the target. Shortage: below the target. Deficiency: a negative balance (CFPB).
How much of my balance is the cushion? By the federal rule, no more than one-sixth of the yearly escrow payments, about two months. Chase says its minimum is typically two months. Pennymac says HUD guidelines allow at most two months.
Can I take money out of my escrow balance? Usually not. Wells Fargo says it typically isn't available for withdrawal. A surplus of $50 or more must be refunded within 30 days of the analysis if you are current (CFPB).
Does escrow pay HOA fees? Usually no. Wells Fargo and Pennymac both say escrow generally does not pay HOA fees.
Check your own number
Look at your latest yearly escrow statement. Find the ending balance and the line that says whether you have a surplus or a shortage. See what your whole house costs to own.