If your escrow payment changes, it means that there has been a change in the amount of money needed to cover your property taxes or homeowners insurance premiums. This can happen due to several reasons, such as an increase in insurance costs or taxes, a shortage in your account because of a tax increase, or a change in your homeowners insurance policies. If there is a shortage in your account because of a tax increase, your lender will cover the shortage until your next escrow analysis. When your analysis takes place, your monthly payment will go up to cover the time you were short and to cover the increased tax payment going forward. Your mortgage servicer only does an escrow analysis once a year, and it won’t necessarily be the same time that your property tax is evaluated. If your escrow payment keeps going up, it could be because your homeowners insurance premium has increased or your property taxes have gone up. Once a year, your lender reviews your escrow account to ensure that there’s enough money to cover your taxes and insurance premiums. If this number changes, so will the amount you’re required to pay. If your bank determines that there will not be sufficient funds in your mortgage escrow account, it may raise your payment by the amount of the shortage. If you have further questions about your escrow account or if you think that there’s an error in your analysis, you can contact your mortgage lender.