How to Escrow payments

If you are escrowing for taxes and insurance the amount to Escrow will be automatically calculated and deducted as a prior expense.

You should plan on escrowing enough every month to have enough money in the account to pay the property tax and insurance bill when it is due.

WARNING

Setup Initial Escrow Payments

The monthly amount to escrow will initially be set in Cell B56 on the Setup worksheet. If there is an escrow deposit, this can be added in Cell B57.

Initial escrow shown as $200 on the Setup worksheet

Changing Escrow Payments

It is easy to change your escrow payments. If for example you are escrowing for insurance and taxes, then the amount you want to escrow may change with time.

Click on the Int Rate & Escrow Changes worksheet.

  1. You will see the original escrow amount and effective dates defined on the Setup worksheet shown in Cells A7 and B7.
  2. In Cell A8 enter the date you want your change to your escrow amount to be effective from.
  3. In Cell B8 enter the amount you want to change the escrow to.

In the future you can add another date and amount below to change the escrow amount.

Change the monthly escrow payment from a set date

Disbursing Money from Escrow

To disburse money from the Escrow Account, you enter date, purpose and amount as follows:

Click on the Record Payments worksheet.

  1. Go to the row of the payment for the month you want to make the disbursement.
  2. Navigate to the right to Columns P, Q and R.
  3. In Column P enter the Date of the Escrow Disbursement.
  4. In Column Q enter the Type of Escrow Disbursement. For example, Insurance or Property Taxes.
  5. In Column R enter Amount of the Escrow Disbursement.

In our example below, we have a total of $1,000 in escrow for the date we want and we want to disburse $500. We have entered $500 which shows that there is now $500 remaining in escrow in the second column.

Disbursing funds from escrow for payment of insurance

Let Us Help

Get in touch if you’re having problems, need something specific or have questions about our spreadsheet.

Claim FREE upgrade

Existing customers of Lender Software Pro v1.7.x claim a FREE upgrade to v2.0.x

© 2021 Testament Research, Inc.

Get started for FREE Today. Register and Download NOW!

Want to Upgrade from Lite to PRO?. Upgrade and Unlock for $79.99

Microsoft® Windows® and Microsoft® Excel® are registered trademarks of Microsoft Corporation in the United States and other countries.
Mac® and macOS® are trademarks of Apple Inc., registered in the U.S. and other countries.

By continuing to browse or by clicking 'Dismiss' you agree to the storing of cookies on your device to enhance your site experience and for analytical purposes. To learn more about how we use cookies, please see our Cookies Policy and Privacy Policy.