An aggregate adjustment is a calculation used by your lender to ensure that the amount collected for your escrow account does not exceed the legal limit.

By law, lenders are restricted from holding more than one-sixth (or about two months') of your annual property tax and insurance payments as a cushion in your escrow account.

Before closing, your lender will perform an aggregate adjustment calculation. This is to determine if they need to credit you any amount. The purpose is to prevent your escrow account from exceeding the maximum permissible balance, ensuring compliance with regulations and safeguarding your finances.