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Understanding Tax Escrow
Understanding Tax Escrow

How are my real estate taxes paid?

Sebi Ovesian avatar
Written by Sebi Ovesian
Updated over a week ago

Majority of borrowers at Hingham Institution for Savings have their real estate taxes paid directly from their monthly mortgage payment through an escrow account.  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.  

What happens if my real estate tax changes?

All loans that are on real estate tax escrow are updated annually to reflect any changes reported by the City/Town.  The analysis runs each May and any changes would be reflected in the payment due on or after July 1st of that year. Borrowers are notified via mail and email of this change in May and it's critical that borrowers make necessary adjustments to their payments based on those communicated adjustments.

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. The amount due will be included in the next monthly billing statement. If you have automatic payments setup for your loan payment, you will be required to mail the shortage/deficiency that is billed separately or contact our Loan Servicing team at [email protected]. The automatic payment will not draft the amount to satisfy the shortage/deficiency.

  • 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 directly through Hingham Institution for Savings, you do not need to do anything and we will adjust the withdrawal amount 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 or switch to automatic payments directly through Hingham Institution for Savings by going filling out the below form:

Can I stop escrow payments?

In order to stop the bank from escrowing for your real estate taxes, you need to send a request to our Loan Servicing team at [email protected].

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:  781-783-1702 or [email protected] 

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