How is my Golden 1 First Mortgage monthly escrow payment calculated?

Your escrow payment is equal to one-twelfth of the total disbursements we anticipate paying on your behalf from your escrow
account during the next 12 months, including any applicable cushion, plus any adjustments for a shortage or deficiency.

Here is a sample scenario: Assume the projected tax and insurance payments over the next 12 months (based on the prior year’s disbursements) total $2,000. This amount is divided by 12 to produce the minimum monthly escrow payment ($2,000 divided by 12 months = $167). If a two-month cushion is retained, the monthly escrow payment would be the total escrow disbursements ($2,000) plus cushion (2 X $167 or $334) for a total of $2,334. This amount is then divided by 12 months which equals $194.50. In this example, the monthly escrow payment is $194.50. See the chart below on how the monthly escrow payments are used to make the tax and insurance payments. Servicers can add up to 2 months payment as cushion.
 

Month	Escrow Payment	Tax/Insurance Payment	Projected Balance
January	$194.50		$194.50
February	$194.50		$389.00
March	$194.50		$583.50
April	$194.50		$778.00
May	$194.50	$800.00 Insurance	$172.50
June	$194.50		$367.00
July	$194.50		$561.50
August	$194.50		$756.00
September	$194.50		$950.50
October	$194.50		$1,145.00
November	$194.50	$1,200.00 Tax	$139.50
December	$194.50		$334.00

If there is a shortage or deficiency in the escrow account, that amount will also be added in and calculated over a 12-month period.
If the payment is causing a hardship, it may be possible to have the shortage/deficiency extended over a longer period to reduce the monthly escrow payment. Please contact Member Service Department by logging into  www.golden1.com then click on “Mortgage” then click on “CHAT NOW” or calling 1-888-908-8933 or TDD 1-866-352-3684, for more information.