Handling Escrow Accounts

Ryan Hofrichter

Hello, I recently received an escrow review statement in connection with my home mortgage. Historically I've not had a separate account set up in quicken to track the escrow account. The review statement states that there is a projected shortage for 2021 and asks that I pay this amount. How would I categorize this payment? Is it best to set up a separate account for the escrow so that it is just marked as a transfer?

Frankx

Hi @Ryan Hofrichter,

I would suggest that you establish a "Mortgage Escrow" account in Quicken because it will allow you to track the various transactions - not only the payments for taxes and insurance, but also the interest earned on the account.  It is an extra step, but one that I think is worthwhile.

Good luck!

Frankx

Frankx

Hi @Ryan Hofrichter,

I would suggest that you establish a "Mortgage Escrow" account in Quicken because it will allow you to track the various transactions - not only the payments for taxes and insurance, but also the interest earned on the account.  It is an extra step, but one that I think is worthwhile.

Good luck!

Frankx

NotACPA

Note that such Escrow account is an ASSET, probably a non-downloadable banking account of some kind.

When your month Mtg payment transfers funds to the Escrow, that's a simple deposit into the Escrow.  When your Insurance or taxes are taken out of Escrow, THAT's the expense.