NoteHarbor's escrow calculator is RESPA-only (12 CFR 1024.17).
The numbers
- Base monthly escrow = annual disbursements ÷ 12.
- The recommended balance is the RESPA maximum: base × 14/12 (a two-month cushion, capped at 1/6 of annual disbursements).
- Insurance premiums feed the calculation only when not marked self-pay.
- Annual tax aggregates across all county tax accounts on the property.
Two figures, two questions
The Escrow tab's summary shows both sides of the year:
- Annual Requirement (configured) — the target, built from the tax accounts and insurance policies on file. What should go out this year.
- Disbursed YTD (actual) — what has actually left escrow this calendar year in tax and insurance disbursements. What has gone out so far.
When the two diverge late in the year, that's your early signal the monthly collection needs a look.
Annual analysis (forward-looking)
The Escrow tab → Annual Analysis doesn't just compare what's on hand — it projects forward: does the current monthly escrow charge cover the projected year-end disbursements plus the RESPA cushion? It surfaces:
- Shortage → collect in full (generates a borrower invoice PDF built from the same forward projection — the invoice and the analysis always agree; it does not post a ledger entry) or roll into next year.
- Surplus → apply to principal, refund, or keep.
- A catch-up projection spreads the difference over the remaining days so collections meet the bill by year end.