The 2024 Borrower Escrow Survey

In 2024, 72% of respondents agreed that their mortgage company communicates clearly about escrow, only 56% said their servicer had explained how rising property taxes or insurance costs could change their payment.

Source: LERETA 2024 Borrower Escrow Survey · n=1,044 homeowners

Executive Summary

Most homeowners know what escrow pays for. Far fewer understand how it can change their monthly payment.

Conducted in February, the survey gathered responses from 1,044 homeowners who had purchased or refinanced within the previous four years and had an escrow account.

In LERETA's first Borrower Escrow Survey, 91% of respondents knew their escrow account includes money for property taxes and 82% knew it covers homeowners and/or flood insurance. Yet only 52% said they completely understood how their escrow account works. More than one in four were only somewhat aware or unaware that escrow changes can affect their monthly payment.

That knowledge gap was reflected in borrowers' expectations. More than a third believed a fixed-rate mortgage meant their total monthly payment could never change. Among respondents whose payment had risen, 53% said the increase surprised them. Rising property taxes were the most commonly cited cause, reported by 57% of respondents, followed by higher homeowners insurance premiums at 38%.

For many households, an unexpected increase could create immediate financial strain. Half said a 10% payment increase would be a hardship, while another 14% said they could not handle it. If their payment rose by 25%, 49% said they would be unable to pay and another 30% would experience hardship.

The findings point to a clear opportunity for mortgage servicers. Although 72% of respondents agreed that their mortgage company communicates clearly about escrow, only 56% said their servicer had explained how rising property taxes or insurance costs could change their payment. Earlier, more proactive education can help borrowers understand what is changing, prepare for higher costs and know where to turn with questions. The survey also established a baseline for tracking how borrower understanding, payment expectations and servicer communication evolve over time.

Source: LERETA 2024 Borrower Escrow Survey

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Methodology

The 2024 Borrower Escrow Survey is LERETA's first annual study of homeowner understanding of mortgage escrow accounts and the impact of rising property taxes and insurance premiums on monthly mortgage payments. The survey was conducted among 1,044 U.S. homeowners who had purchased or refinanced their home within the previous four years and carried an escrow account. Findings were released February 15, 2024.

The full report is not available for archived editions. View the 2026 Borrower Escrow Survey for complete findings and downloadable data.

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