How are tax and insurance projections calculated for the next year?

Each year we project how much you’ll need in your escrow account for the upcoming year. We base it on the amount of taxes and/or insurance you paid during the past 12 months. The total paid is divided by 12 to get your projected monthly escrow payment.

Annually, your payment must be adjusted to ensure your monthly balance remains above a required minimum balance, which is 2 months of escrow payments, for the next 12 months.