Escrow Made Easier With M&T

M&T can manage your escrow payments so
you can focus on the big picture. 

New to escrow? We want to help you understand.

What is an escrow account?

An escrow account is established to pay property taxes, homeowner's insurance and flood insurance, if applicable. Funds for your tax and insurance payments are collected as part of your monthly payment, deposited into an account, and used by the mortgage servicer making payments on your behalf.

Why am I required to have an escrow account?

Most of the time, escrow accounts are required if your down payment was less than 20%. An escrow account helps you manage large expenses like property taxes and insurance premiums, so you don’t have to save for them separately.


Have questions? We are here to help.

By comparing the “Projected” to “Actual” disbursement columns in the table on page 2 of your annual escrow account statement, you can observe which disbursements (taxes or insurance) were greater than projected. See the sample escrow statement below for helpful tips on reading your statement.

These payments may have increased for several reasons. Some of the most common reasons are:

Tax Related

  • An increase in your property tax rate (per thousand of assessed value)
  • An increase in your property’s assessed value
  • Changes in your tax due date. If your tax due date was moved forward, an escrow shortage will occur as not enough funds would have been collected when the bill came due

Insurance Related

  • Increase in your insurance premiums
  • Change in your insurance carrier. Typically the previous insurance carrier will refund the “unearned” premiums they collected. If these are not deposited into your escrow account a shortage will occur
  • Changes in your insurance coverage. Did you increase coverage levels or reduce your deductibles?


  • Fewer deposits into your escrow account than expected. Have any “less-than-full” mortgage payments been made?

TIP:  Municipalities offer a few common tax exemptions for disability, homestead, senior and veteran status. Check with your local tax office to see if you are eligible for these, or any other exemptions.

Your new escrow payment is comprised of two components:

  • The first is your anticipated tax and insurance expenses for the coming year. Your total anticipated tax and insurance expenses can be found on the top of page 3 of your annual escrow account statement.
  • The second relates to maintaining a minimum required escrow account balance (reserve), which is determined by the Real Estate Settlement Procedures Act (RESPA), your mortgage contract or state law. The difference between your lowest projected balance in the coming year and your minimum required balance is your “shortage amount.” This appears on the bottom of page 3 of your annual escrow account statement. 
  • See the sample escrow statement below for helpful tips on reading your statement.

These values are added together and divided by the number of scheduled payments for the coming year (usually 12) to arrive at your new escrow payment.

Follow these steps to view your most recent taxes and insurance costs online:

  1. Log in to Online Banking
  2. From the Account Summary page, select the M&T Mortgage link located under the Loans category
  3. From the M&T Mortgage detail page, select the “View my Mortgage Info” button
  4. Continue through to the M&T My Mortgage Info website
  5. Select the “My Loan” drop down option and choose “Escrow”

Note: You can also find this information on your monthly billing statement under escrow activity.

Payments from your escrow account are determined on a yearly basis and changes in taxes/insurance may not be accounted for until it is time for the next escrow analysis. If you have documentation that shows a change in your taxes or insurance, please email it to

If you have enrolled in M&T automated payments, you do not need to do anything. Your payment will adjust to the new amounts. If you have set up your payments with a third-party bill pay service or are transferring funds periodically from you M&T checking/savings account, you will need to adjust your payments to reflect the new payment amount.

You have two options:

  1. Online: Log in to M&T Online or Mobile Banking, select your mortgage account and click the “Pay Now” button.

    Your mortgage loan must be current to use this option.

  2. By Mail: Send a check made payable to M&T Bank and indicate on the memo line that you are making an escrow shortage payment.

    Please mail the check to:

    M&T Bank
    Escrow Department
    P.O. Box 64787
    Baltimore, MD 21264-4787.

    If you are paying your escrow shortage, the funds will be applied immediately, however your mortgage statement may not reflect changes until the analysis effective date. 
Escrow Account Disclosure Statement

Understand your annual escrow account statement.

We're here to help make it easier for you to review and understand the details. Use this sample statement to learn more.

Review the Sample

Understanding Escrow Analysis

We perform an annual escrow analysis to help us determine if your account has enough funds to cover taxes and insurance.

Both the “analysis month” and “payment month” will impact your escrow payment. Your escrow account will be reviewed during the analysis month and you’ll receive an escrow statement by the end of that month. You should expect your mortgage payment to change during the payment month.

Analysis and payments vary monthly by state. You can also log in to M&T Online Banking to see your personal escrow statement.

NOTE: Adjustable Rate Mortgage accounts are analyzed along with their scheduled rate changes and do not follow this state table below.

If your loan was acquired by M&T after March 2020 your loan will be analyzed yearly on your closing date anniversary. If your loan was closed by M&T after September 2020 your loan will be analyzed yearly on your closing date anniversary.

State Analysis Month Payment Changed Month
Alabama (AL) December February
Alaska (AK) August October
Arizona (AZ) November January
Arkansas (AR) November January
California (CA) December February
Colorado (CO) March May
Connecticut (CT) August October
Delaware (DE) October December
District of Columbia (DC) September November
Florida (FL) December February
Georgia (GA) April June
Guam (GU) July September
Hawaii (HI) March May
Idaho (ID) November January
Illinois (IL) August October
Indiana (IN) May July
Iowa (IA) November January
Kansas (KS) November January
Kentucky (KY) January March
Louisiana (LA) February April
Maine (ME) June August
Maryland (MD) September November
Massachusetts (MA) January March
Michigan (MI) January March
Minnesota (MN) May July
Mississippi (MS) February April
Missouri (MO) January March
Montana (MT) December February
Nebraska (NE) May July
Nevada (NV) July September
New Hampshire (NH) July September
New Jersey (NJ) November January
New Mexico (NM) December February
New York (NY) See Details See Details
North Carolina (NC) January March
North Dakota (ND) September November
Ohio (OH) January March
Oklahoma (OK) December February
Oregon (OR) November January
Pennsylvania (PA) October December
Puerto Rico (PR) November January
Rhode Island (RI) July September
South Carolina (SC) January March
South Dakota (SD) March May
Tennessee (TN) February April
Texas (TX) February April
Utah (UT) December February
Vermont (VT) November January
Virgin Islands (VI) June August
Virginia (VA) April June
Washington (WA) March May
West Virginia (WV) September November
Wisconsin (WI) February April
Wyoming (WY) December February

Contact Options

The M&T servicing team is happy to assist you.

Have a question about your existing M&T
mortgage? Let us know and we’ll get back to you as soon as possible.

All lending products are subject to credit and property approval. Certain conditions and restrictions apply. Refinancing to reduce total monthly payments may lengthen repayment term or increase total interest expense compared with your current situation. Products are not available in all states.