calculate reserves: How to Calculate Escrows/Reserves Required at Closing - 07/19/18 04:05 PM
When most mortgage lenders calculate escrows/reserves required at closing they look for 14 months of reserves.  The key in figuring how many months will be collected at closing will depend on when the first mortgage payment will be due, the renewal dates of their insurance policy, and when the taxes, if any, are due. 
Example:  The closing date is January 31st with a first payment due March 1st.  Taxes are due December 31st.  Homeowners insurance premiums are due July 11th. 
Taxes:  How many payments would they make before the taxes would be due?  They would pay into their escrow account March, April, Many, June, July, … (0 comments)