Banking & Borrowing FAQs
Our routing number is 062205791.
In most situations, the sender will need the account number that will receive the transfer, Bank Independent's routing number (062205791), and the Bank's physical address, which is 710 South Montgomery Avenue, Sheffield, AL 35660. If the sender requests this information in writing, contact Customer Service or visit your local branch, and we'll provide a wire transfer information letter.
A: An escrow account is established in conjunction with a mortgage loan and is used to make payments on your behalf for real estate property taxes and homeowners (hazard) insurance premiums (and flood insurance premiums, if applicable). To make these payments, we collect escrow funds as part of your monthly mortgage payment. This ensures that your tax and insurance obligations are paid in full and on time without you having to save and budget for these large payments.
A: Bank Independent collects funds in an escrow account to pay the real estate taxes and homeowners insurance premiums due on the property securing your mortgage. If flood insurance is required for your loan, these premiums must also be paid through your escrow account.
A: No. We do not collect funds in an escrow account to pay bills like interim or additional taxes, additional non-required personal property insurance premiums, or homeowner association fees.
A: We usually receive information about your real estate property taxes directly from the taxing authority, but if we do need additional information from you, we will contact you.
A: If you have a remaining balance in your escrow account at the time of your mortgage payoff, this balance will be deducted from your payoff amount.
A: During our Annual Escrow Analysis, we will estimate the amount we will have to pay over the next twelve months for your real estate property taxes and homeowners (hazard) insurance premiums. This estimate is based on information from your loan closing documents, your previous tax and insurance bills, or information we have received from your taxing authority or insurance company. We use that amount, along with any adjustments that will be necessary to keep your escrow account in balance, to determine the monthly installment necessary to meet these obligations.
A: If you would like for us to review your account ahead of schedule, and potentially adjust your escrow payment, please contact us.
A: Possibly. The property taxes or insurance premiums you made when closing your mortgage loan were either paid on bills that were due immediately or were used as an initial deposit into your escrow account to cover future real estate property taxes and homeowners (hazard) insurance premiums. Your loan closing documents disclosed the intended use of any funds collected.
A: Each year, Bank Independent will review your escrow account to make sure the escrow portion of your monthly mortgage payment will cover your annual real estate property taxes and homeowners (hazard) insurance premiums, while also maintaining the minimum escrow account balance, if a minimum balance is required. As property taxes and insurance premiums may fluctuate, this analysis is important to ensure that appropriate adjustments are made to the amount deposited in the account.
A: We analyze all escrow accounts annually, beginning one year from the due date of your first mortgage payment.
A: After Bank Independent completes the Escrow Analysis described above, we provide all escrow account holders an Annual Escrow Account Disclosure Statement detailing all actual transactions to and from your account since your last escrow analysis (if applicable). The previous year’s projected escrow activity (if applicable) is provided with the statement for comparison purposes. Your statement also includes projected, or expected, activity in your escrow account along with your new mortgage payment, which includes any surplus or shortage.
A: Your escrow account will include an allotted cushion of funds set aside to cover unanticipated increases in taxes or insurance premiums. Should the escrow portion of your monthly payment, plus this additional amount, not be enough to cover your tax and insurance payments, your Annual Escrow Account Disclosure Statement will show a shortage of funds. If your remaining escrow account balance exceeds the amount required to pay your tax and insurance payments plus the additional cushion of funds, your Annual Escrow Account Disclosure Statement will show a surplus of funds.
A: At any given point during the year, the lowest balance in your escrow account—or the allotted cushion of funds—should equal the amount of two escrow deposits. This minimum balance requirement is governed by federal law, or by your loan contract and applicable state law, and helps ensure that if taxes or insurance payments increase, your account can cover the additional expense without a large shortage.
A: Your payment options will depend on the amount of the shortage.
If your shortage is less than one month’s escrow account deposit, we will request that you pay this amount within 30 days or pay the amount due over the next 12 months through an increase to your monthly mortgage payment (one-twelfth of the total surplus amount will be added to each of your next 12 payments).
If the shortage is more than one month's payment, we will add the amount due to your monthly payment to be paid over a 12-month period as described above.
If you choose to pay the shortage amount in full, your Annual Escrow Account Disclosure Statement will include a detachable coupon to return with your payment.
A: If your account is current, and the surplus is over $50, a refund check for the amount of your overage will be included with your Annual Escrow Account Disclosure Statement. If the overage is $50 or less, your surplus will be retained in your escrow account to reduce the escrow portion of your monthly payments over the next twelve months. Your Annual Escrow Account Disclosure Statement will indicate the amount of your surplus and if it is being refunded to you or deducted from your upcoming payments.