When Was the Last Time You Checked Your Property Tax Escrow?

Many homeowners do not realize there is an issue until they receive an unexpected bill.

If your property taxes are paid through escrow, your lender collects an estimated amount each month as part of your mortgage payment. They then use that money to pay your property taxes on your behalf.

This system is convenient, but it is based on estimates. And those estimates are not always exact.

Why Escrow Estimates Can Be Wrong

Property taxes often increase over time. When they do, your lender may not adjust your escrow immediately. This can lead to two situations:

• You underpay, and later receive a bill to cover the shortage

• You overpay, and have more money tied up than necessary

  
  

Both situations can affect your monthly budget without you realizing it.

Step 1: Confirm Your Actual Property Tax Amount

The most reliable way to check is through your local assessor’s office. Most counties provide an online database where you can see your current tax bill.

This shows the exact amount, not an estimate.Comparing this number with what your lender is collecting helps you spot any differences early.

Step 2: Review Your Escrow With Your Lender

You can do this by:

• Checking your latest mortgage statement, or

• Contacting your mortgage company directlyThis helps confirm whether your escrow payments match your real tax amount.

If there is a difference, your lender can adjust it.Taking a few minutes to review your escrow can help you avoid:

• Unexpected escrow shortages

• Sudden increases in your monthly payment

• Paying more than necessary