My Credit Union Escrow Accounts on 1st Mortgages
Members with a first mortgage through My Credit Union may establish an escrow account to pay for property taxes and/or hazard insurance (each, an “Escrowed Item”).
The purpose of an escrow account is to place a portion of the yearly amount due for an Escrowed Item into the account for payment(s) in the future.
If you currently have your mortgage through My Credit Union or are interested in getting a mortgage through My Credit Union, establishing an escrow account will provide unparalleled convenience and peace of mind.
If you are interested in starting up an escrow account or have any questions about one, please call My Credit Union’s Real Estate Escrow Representative at 612.798.7106.
Frequently Asked Questions about My Credit Union's escrow account:
What happens if I let My Credit Union know I am interested in an escrow account?
Upon hearing from you, the credit union will send you a packet providing more detailed information along with a list of documentation needed to perform the initial analysis. This analysis will let you know how much, if any, you will need to initially deposit into this account and what you’re new monthly payment will be for the coming year.
Do I have to escrow for both my taxes and insurance?
No, you can choose to only escrow for your property taxes.
I have a first and second mortgage; does this combine everything together into one payment?
No, the monthly escrow amount will be added to your first mortgage only. This will not change your second mortgage payment amount or due date. It will remain the way it is now.
What if I’m not sure?
My Credit Union has sent letters inquiring whether or not you want to escrow. If you are not sure, check the ‘Yes’ box and/or make a notation that you’re unsure. This way, the credit union can send you more information to help you make your decision.
Saying yes to this notice in no way obligates you to participate in the program.
What happens if I choose not to participate in the escrow program?
Upon notification that you don't want to participate, the credit union will send you a ‘Request for Waiver’ agreement for you to sign and return to the credit union.
I've received a letter from My Credit Union asking if I want to participate. If I don’t want to participate, do I need to send the form back or can I just call the credit union?
Please do send the form back to us. The credit union needs to keep track of the responses and this is the best way for us to do so.
How long will it take?
It depends on when we receive the information we need from you. It could be anywhere from two weeks to two months.
What if I’m past due on my taxes and insurance due for this year?
The credit union will be offering financing options to members that are currently past due or do not have the initial funds needed to set up their account. More information will be provided once the credit union receives your particular information.
Will my escrow account earn interest?
No, the credit union will not be paying interest on these account.