Minimum Required (Escrow) Balance

The minimum required balance is the lowest positive balance allowed in your escrow account at any given time—this positive balance is also known as a cushion requirement.

We may require your escrow account to contain at least twice (2x) your monthly escrow contribution at all times, not including mortgage insurance, in accordance with state and federal law.

Example: If you’re currently required to put $500/month into escrow, your minimum required balance or escrow cushion could be $1,000.

Related Articles

Escrow Account Definition

Escrow account overview, including when it’s required and how it’s used

Escrow Analysis & Escrow Review Statement

Explains the escrow analysis process and resulting statement

Escrow Shortage & Surplus

Describes escrow shortage & surplus and how they are calculated