We estimate how much your taxes and insurance will cost over the next 12 months, based on the information we have at loan closing. Please refer to your loan closing documents, taxing authority and insurance company. Based on state law, we then determine how much your starting balance and monthly escrow payments will be. On an annual basis, we reanalyze your escrow account based on updated tax and insurance information. This may result in an adjustment to the escrow portion of your payment for the coming year.