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.


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

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