Your mortgage servicer performs an annual escrow analysis to ensure enough is being collected to pay property taxes and insurance. If taxes or insurance increased, your monthly payment goes up. If they decreased, your payment goes down. You will receive a statement showing the analysis. This is normal and happens every year. It is not the servicer charging you more arbitrarily.
How Escrow Analysis Works
Each year, your mortgage servicer reviews the amount collected in your escrow account and compares it to the actual payments made for property taxes and insurance. They then project next year's costs and adjust your monthly payment accordingly. The analysis ensures there is enough in the account to pay upcoming bills without being over-collected. By law, servicers must conduct this analysis at least once per year and send you a detailed statement.
Why Your Payment Changed
The most common reason for a payment increase is rising property taxes. In Texas, property values and tax rates often increase, requiring higher monthly escrow contributions. Homeowner's insurance premiums also rise 10-15% annually in Texas due to hail and wind claims. If your payment decreased, your taxes or insurance went down, or your escrow account had a surplus from the previous year.
What the Statement Shows
Your annual escrow analysis statement includes: beginning balance, payments made from escrow (taxes, insurance), monthly contributions, projected payments for the coming year, and the new monthly escrow amount. It will also show whether you have a shortage (lump sum option to pay or spread over 12 months) or surplus (refund check).
How to Appeal
If you believe your escrow analysis is wrong, contact your servicer first. Common errors include incorrect tax amounts or double-counted insurance payments. If your property tax assessment increased, you can protest it through your county appraisal district. In Bexar County, the protest deadline is May 15 or 30 days after the notice of value, whichever is later. A successful protest can lower your tax bill and reduce your escrow payment.