How is my initial tax escrow payment calculated?
Your initial tax escrow payment is determined at the time you apply for financing of your home and land if land is included with your mortgage. The sales price of the home and value of real estate that are included as collateral for your mortgage are multiplied by the most recent rate charged by your taxing authority and becomes your annual property tax estimate. Your initial escrow payment that is collected along with your scheduled mortgage payment is 1/12th of your annual property tax estimate. Future annual tax escrow projections will be determined by taxes owed and paid the previous year.