Many Hingham Institution for Savings loans include an escrow account that accrues to pay for real estate taxes. If you are unsure if you have an escrow account included with your loan you can refer to your statement. You should see a line item that says “taxes & insurance” and if there is an amount showing that means your real estate taxes will be paid directly from the bank.
Please note: Hingham Institution for Savings does not collect escrow for homeowners insurance.
Do I need to send my real estate tax bill to the bank?
No, you do not need to send us your real estate tax bill. However, we would like to receive a copy of the first tax bill you receive after the original closing of your loan.
What happens if my real estate tax changes?
All loans with escrow are analyzed annually. The analysis runs each May with payment changes going into effect with the first monthly payment due on or after July 1st of that year. The analysis is based on a 1-month escrow payment cushion for taxes and flood insurance.
Shortages, deficiencies and overages are handled in the following manner:
For residential loans
- Shortages and deficiencies are collected over a 12-month period beginning with the July payment.
- Overages equal to or in excess of $50 are sent to the borrower within 30 days of the analysis date.
- Overages less than $50 are used as a credit on the next year’s escrow payments.
For commercial loans
- Deficiencies and shortages are identified and the borrower is notified to make the payment within 30 days.
- Overages remain in the escrow account and may be paid out upon request.
- The monthly escrow payment is adjusted according to the annual tax for the upcoming fiscal year.
I have automatic payments setup for my mortgage. If there are changes in my escrow what will happen?
If your automatic payment is setup through an account with Hingham Institution for Savings or you have completed our automatic payment form to authorize a draw from another bank, you do not need to do anything. Our transfer management system will automatically update to your new regular monthly payment.
If your automatic payment is set up through Bill Pay, you will need to personally update your new payment amount by logging into your online banking and navigating to Bill Pay.
Can I stop escrow payments?
In order to stop escrow payments, you need to send a written request to:
Hingham Institution for Savings
Attn: Loan Servicing
55 Main Street
Hingham, MA 02043
Each loan will be reviewed and must meet specific criteria.
What happens with my real estate tax payment after my loan is paid?
Once your loan is closed after payoff, you are responsible for paying real estate taxes directly.
For questions about tax escrow you may contact our loan servicing department: 781-749-2200 or [email protected]