Ever wonder how your lender makes sure your Huxley property taxes and insurance get paid on time? If you have a mortgage, that steady “escrow” line in your payment handles it. You want predictability, no late fees and no surprises at renewal. This guide breaks down how escrow works in Story County, what your servicer must do, and how to keep your monthly payment on track. Let’s dive in.
Escrow basics: what it covers
Your escrow account holds part of your monthly payment to cover property taxes and required insurance. Your loan servicer collects the money, then pays the Story County Treasurer and your insurance company when bills come due. Federal rules set how servicers estimate, collect and disclose these amounts so you stay informed.
Story County tax timeline you can trust
Story County mails annual tax statements in August. The first half is due by September 30 and the second half is due by March 31 of the following year. You can confirm amounts, payments and receipts on the county’s site. See the county’s schedule and payment options on the Story County Treasurer’s Property Tax page: Story County property tax deadlines and payments.
How your lender calculates escrow
Your servicer follows federal rules under RESPA/Regulation X. The same method applies whether you bought last month or ten years ago.
Monthly method
Servicers estimate your next 12 months of tax and insurance bills and collect one-twelfth each month. This turns big semiannual and annual bills into a predictable monthly amount. Learn more in the rule text: Regulation X escrow standards.
Cushion limit
Your servicer can keep a small reserve to prevent shortfalls. The maximum cushion is two months of projected escrow payments, also known as one-sixth of the annual total.
Annual statements
At least once a year, your servicer must analyze your escrow, project next year’s bills and send you a statement. It shows the monthly escrow amount, expected disbursements and whether you have a shortage or surplus.
Shortages and surpluses
If your analysis shows a surplus of 50 dollars or more and your loan is current, the servicer must refund it within 30 days. If there is a shortage, the servicer will outline your options, such as a lump-sum payment or spreading it over at least 12 months.
Example: estimating a Huxley escrow payment
- Annual Story County property taxes: 2,400 dollars
- Annual homeowners insurance: 1,200 dollars
- Total annual disbursements: 3,600 dollars
- Estimated monthly escrow: 3,600 ÷ 12 = 300 dollars
- Maximum cushion: 1/6 of 3,600 = 600 dollars
This simple math shows how your escrow portion is set. Illustrative only. Your servicer’s official escrow analysis controls the final numbers.
When local taxes or insurance change
Your escrow can rise or fall as taxes or premiums change. Story County tax bills reflect assessed value, rollbacks and levies. If levies change or your assessed value increases, your tax bill and escrow needs can go up. To understand your bill inputs, review the county’s overview of assessments and levies: Story County Tax Levy Calculation and try the Property Tax Estimator and rollbacks page.
At closing: what buyers and sellers should expect
Tax proration in Iowa
At most Iowa closings, taxes are prorated to the closing date using the latest available figures. Sellers typically credit buyers for the seller’s share up to closing, and the settlement statement shows the math. This reflects standard Iowa practice recognized by courts: Iowa proration practice reference.
Initial escrow deposit
If your loan requires escrow, the servicer performs an initial analysis and may collect a startup deposit at closing so the account has enough to cover the first bills and cushion. You will receive an initial escrow statement at or shortly after closing.
Payoff and escrow refunds for sellers
If you are paying off a mortgage at sale, your servicer will settle the escrow after closing. Any remaining surplus is typically refunded to you according to federal escrow rules.
Avoiding insurance issues
Your loan likely requires hazard insurance, and flood insurance if the home is in a Special Flood Hazard Area. Keep your policy active and send renewal proof to your servicer before the due date. If a servicer believes coverage lapsed, federal rules limit when they can buy lender-placed insurance and charge you. They must send notices in advance and cancel and refund overlapping premiums if you prove coverage. See the protections here: force-placed insurance notice and refund rules.
Tip: If you have questions about flood maps or whether insurance might be required, review FEMA’s guidance on checking a property’s flood zone: FEMA flood map lookup basics.
Troubleshooting and where to get help
- Verify the bill: For assessment or parcel questions, contact the Story County Assessor. For payment status, penalties or receipts, check the Treasurer’s Property Tax page listed above.
- Check your escrow statement: Compare disbursements and projected bills to your county and insurance documents.
- Dispute in writing: If you find an escrow error or force-placed insurance you believe is wrong, write to your servicer and include copies of your tax bill or insurance declarations. For more on your servicing rights, see the CFPB’s resource: mortgage servicing FAQs.
Ready to buy or sell in Huxley and want clear guidance on taxes, escrow and next steps? Reach out to Jason Jennings Real Estate for practical, local support.
FAQs
When are Story County property taxes due if I escrow?
- Story County mails bills in August, with installments due September 30 and March 31; your servicer uses your escrow to pay them on time.
How does my lender set the monthly escrow amount?
- The servicer estimates 12 months of taxes and insurance, divides by 12 and may include up to a two-month cushion, then reviews it each year.
Why did my total mortgage payment go up if my rate is fixed?
- Your principal and interest stayed the same, but the escrow portion rose because taxes or insurance increased after the annual analysis.
What happens if my escrow has a surplus or a shortage?
- Surpluses of 50 dollars or more must be refunded within 30 days; shortages can be repaid in a lump sum or spread over at least 12 months.
As a seller, what happens to my escrow at payoff?
- After your loan is paid off at closing, the servicer reconciles the escrow account and typically refunds any remaining surplus to you.
