The 2025 Borrower Escrow Survey

In 2025, 60% of homeowners with escrow accounts who had purchased or refinanced within the previous four years said they fully understood how their account works.

Source: LERETA 2025 Borrower Escrow Survey · n=1,050 homeowners

Executive Summary

Escrow confusion was becoming more expensive. Rising taxes and insurance were pushing payments higher while more homeowners misunderstood what a fixed rate actually protects.

LERETA's second annual Borrower Escrow Survey included homeowners with escrow accounts who had purchased or refinanced within the previous four years. Sixty percent said they fully understood how their account works. Yet 45% incorrectly believed a fixed-rate mortgage guarantees their total monthly payment will stay the same, up from 36% in 2024.

For many borrowers, rising costs had already reached their monthly payment. More than two-thirds experienced an increase over the previous two years due to higher taxes and insurance, and 55% of those homeowners were surprised. Eighty percent reported higher property taxes, nearly 70% saw homeowners insurance premiums rise and 57% of respondents with flood insurance experienced an increase.

Insurance pressures extended beyond higher premiums. More than one in four homeowners had been dropped by their carrier or told the carrier was leaving their area, and 65% said finding another policy was difficult. Nearly half would consider selling and relocating if their property taxes increased significantly, while 27% would consider moving because of higher insurance costs.

Most borrowers said escrow information was available. Eighty-one percent believed their mortgage company provided the information they needed, and 82% knew how to access it. Even so, 21% wanted more details about their account.

The pattern was clear: escrow confusion and rising costs were reinforcing each other, raising the stakes for earlier, more actionable borrower communication.

Source: LERETA 2025 Borrower Escrow Survey

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Methodology

The 2025 Borrower Escrow Survey is LERETA's second annual study. The survey was conducted among 1,050 U.S. homeowners who had purchased or refinanced their home within the previous four years and carried an escrow account. Findings were released January 21, 2025.

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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