Every piece of the monthly housing cost, itemised
Why the payment moves: escrow analysis
In short
Your servicer reviews the escrow account at least once a year. If taxes or insurance went up, the account may have a shortage and your monthly payment rises; if they fell, you may get a surplus refund. Principal and interest on a fixed-rate loan do not change, but the escrow part can.
Last reviewed against the primary sources listed below.
Reading the escrow statement
- Projected payments for the coming year.
- Actual payments made from the account last year.
- Any shortage or surplus, and how it will be handled.
If there is a shortage
Servicers usually let you pay it in a lump sum or spread it over the next year. Check the reason, such as a reassessment or premium change, and challenge errors with the county or insurer.
Learn more
The CFPB escrow guide explains how accounts and analyses work.
Line-item questions
Why did my mortgage payment go up?
On a fixed-rate loan, the usual reason is escrow: property taxes or insurance premiums rose and the servicer adjusted the monthly escrow amount.
What is an escrow shortage?
The account did not hold enough to cover the bills it paid or will pay, so the servicer asks you to make up the difference.