Why did my payment change?
When your taxes and/or insurance bills change from year to year, it may be necessary to adjust the amount you are paying into your escrow account, too.
Reasons your expenses changed may include:
Insurance: Changes to type, extent, due date, rate, insurance policy, or carrier.
Real estate taxes: Property value, tax rate, or due date changed.
Your property value changed: If you have built a new home or renovated it, your property value will likely increase. Any substantial improvement to your property will likely increase your property taxes.
Initial escrow deposit: Escrow costs may be estimated at loan closing if the information is unavailable. If the amount collected to set up your escrow account was more or less than your actual costs, your payment will be adjusted accordingly.
Shortage: Your balance is expected to fall below your Minimum Required Balance. A shortage repayment is automatically divided across your payments for the upcoming 12 months, increasing your monthly payment. See our Escrow Shortage FAQs for more information.
