To determine your escrow payments, we:
- Estimate the amount we’ll have to pay over the next 12 months for your real estate tax and homeowners insurance bills. We base this estimate on information from your loan closing documents, your taxing authority and insurance company, or your previous tax and insurance bills.
- Divide the estimated amount by 12 and add the result to your monthly payment.
- Determine whether any adjustments, such as shortage payments, are necessary to keep your escrow account in balance.