Escrow Account

The escrow account is where funds are deposited to cover insurance and property tax obligations. If the loan has an escrow account, the regular mortgage payment includes a portion for these purposes.

The escrow portion of regular mortgage payments (if applicable) are deposited in an escrow account and Popular issues property tax and/or insurance payments, as applicable, based on their respective due dates. Insurance is renewed on an annual basis and property taxes are paid semi-annually.

Popular’s Mortgage Servicing team analyzes the escrow account every year. The purpose of this analysis is to calculate the balances needed to cover property tax and insurance obligations. Also, the analysis determines the amount you must pay every month into the escrow account and identify if there are deficiencies or surpluses in said account.

Once the analysis is completed you will receive, via regular mail, a document known as the Annual Escrow Account Statement.

You need to be aware that changes in payments are caused by the outcome of the escrow account’s analysis and resulting from premium changes in property insurance policy renewals or adjustments in the property tax Municipal Revenue Collection Center (CRIM, by its acronym in Spanish) billing process.

What is the Annual Escrow Account Statement?

It’s a document we will send you by mail every year after the escrow account analysis. This document provides the following information:

  1. The new regular mortgage payment and the portion to be deposited into the escrow account over the next 12 months.
  2. Amount of the previous monthly payment and the portion that was deposited into the escrow account.
  3. Total amount deposited into the escrow account last year.
  4. Total amount paid from the escrow account for property tax and insurance premiums last year.
  5. Escrow account balance.
  6. Escrow account history (disbursements / accruals / contributions) during the past 12 months.
  7. A projection of disbursements and contributions over the next 12 months.
  8. If there is a deficiency or surplus and how they are managed.

What happens if after conducting the annual analysis, the escrow account reflects a surplus or deficiency?

Following the annual analysis, if the escrow account shows a surplus of $49 or less, it will be applied to the next escrow account payments; if it is equal to or greater than $50, it will be returned to you in a check within 30 days after the account analysis.

If the escrow account shows a deficiency, it will be charged in equal amounts over a term of no less than 12 months as established in the Annual Statement; therefore, your regular mortgage payment will increase.

Remember that changes in insurance or property taxes have a direct impact on your monthly payment.

You can download an example of the escrow account analysis sent by Popular at the following link.


Need more help?

We are receiving an extraordinary volume of calls, which is affecting our waiting times. We appreciate your understanding and your trust in us.

Call us at 787.724.3659 or Access Mi Banco Online (desktop version), log in by entering your username and password, and in the upper part of the website click on “Contact Us”. From there, write your message, and we will gladly assist you.

We encourage you to consult the following information regarding useful and accessible solutions for you.



FDIC Member. Products and services offered by Banco Popular de Puerto Rico.

1Withdrawals are subject to the availability of funds in your account.

2Deposits are subject to the provisions of the Bank’s Funds Availability Policy. Easy Deposit Mobile is a free service and only for Banco Popular customers with individual deposit accounts and/or commercial accounts (FlexiCuenta de Negocios® & B-Smart®). Customers selected in accordance with the Bank’s eligibility criteria. Checks deposited before 6:00 p.m. of a business day will be processed the same business day, subject to verification and deposit validation. In the back of the check to be deposited, enter your signature, account number and the phrase “For Deposit Only at BPPR.”

3Insurance is underwritten by Chubb Insurance Company of Puerto Rico. Insurance products are offered by Popular Insurance LLC, a subsidiary of Popular, Inc. and an affiliate of Banco Popular. Popular Insurance LLC is duly authorized by the Office of the Insurance Commissioner of Puerto Rico to offer and transact insurance products and has been appointed by Chubb Insurance Company as its Authorized Representative. Popular, Inc. and Banco Popular de Puerto Rico do not offer, underwrite or issue insurance products. Chubb and Popular Insurance LLC, Popular Inc. or Banco Popular de Puerto Rico are not affiliates. Obtaining this insurance is optional and it may be canceled at any time. Banco Popular de Puerto Rico will not condition the credit decision upon the purchase of this insurance or your agreement not to obtain such insurance from an unaffiliated entity. Insurance products are not insured by the FDIC, or other government agencies; are not deposits or obligations of, nor are guaranteed by Banco Popular de Puerto Rico its subsidiaries and/or affiliates. Certain limitations, exclusions and conditions apply. For more information, refer to the Certificate of Insurance.