Last updated: November 10, 2026
Short answer: If your mortgage escrow payment went up in Avondale, AZ, the first reason the CFPB lists is a change in your property taxes or homeowners insurance. Your servicer reviews the escrow account once a year and sends an annual statement. If the account came up short, federal rules limit how the servicer can ask you to repay it.
Key takeaways
- Your escrow account pays your property taxes and homeowners insurance for you. When those bills change, your payment changes.
- Your servicer must send an annual escrow account statement within 30 days of the end of the escrow year.
- A shortage of one month's escrow payment or more can be spread over at least 12 months.
- If you think it's a mistake, call your servicer, then send a written notice of error.
Want to talk it through? Book a time to chat with me (30 minutes, 9 AM–7 PM Arizona time).
¡Qué tal! I'm Rosie Armenta. A higher mortgage payment can feel like a surprise bill, especially when your interest rate didn't change. The good news is that the reason is often printed on paper you already have. Let's walk through what escrow is, why it changes and what to check before you call your servicer.
What is an escrow account on my mortgage?
The CFPB explains that an escrow account (also called an impound account) is set up by your lender to pay certain property bills, like property taxes and homeowners insurance. Part of each monthly mortgage payment goes into the account, and your mortgage servicer pays those bills for you when they come due. Many lenders require escrow so they know the bills get paid.
Here in Maricopa County, property taxes are billed in two halves. Under A.R.S. § 42-18052, the first half is due October 1 and becomes delinquent after November 1 at 5:00 p.m. The second half is due March 1 and becomes delinquent after May 1 at 5:00 p.m. If you have escrow, your servicer pays these for you. My post on property taxes in Avondale, AZ explains how the bill itself is figured.
Why did my payment go up?
The CFPB lists several common reasons a mortgage payment changes. For homeowners with escrow, the first one is the big one:
- Your property taxes or homeowners insurance changed. When either bill goes up, the escrow part of your payment goes up too.
- A temporary buydown ended. Those lower the payment for a limited time, often one to three years.
- You have an adjustable-rate mortgage and the rate changed.
- Mortgage insurance changed, or you stopped paying it.
- New fees were added.
- A servicer mistake. It happens, and you can ask them to fix it.
If insurance is the piece that jumped, my post on homeowners insurance in Avondale, AZ covers what drives the premium.
What is an escrow shortage?
Each year your servicer does an escrow account analysis. It compares what it collected with what it paid out, then projects next year's bills. Under federal rule 12 CFR § 1024.17:
- A shortage means the account is projected to run lower than it should.
- A surplus of $50 or more must be refunded to you within 30 days, if you're current on your payments.
- The servicer may keep a cushion, but no more than one-sixth of the estimated yearly escrow bills (about two months of escrow payments), unless your loan papers or state law set a lower limit.
That's why some homeowners see two changes at once: a higher monthly escrow amount for this year's bigger bills, plus a little extra to make up last year's shortage.
How can my servicer collect a shortage?
The rule gives the servicer limited choices, depending on the size of the shortage:
| If the shortage is... | The servicer may... |
|---|---|
| Less than one month's escrow payment | Do nothing, ask you to repay it within 30 days, or spread it over at least 12 months |
| One month's escrow payment or more | Do nothing, or spread it over at least 12 months |
The servicer must tell you about a shortage at least once during the escrow year. The notice can be part of the annual statement.
Example only: made-up round numbers, not real Avondale prices.
| Example only | Last year | This year |
|---|---|---|
| Property tax bill | $2,000 | $2,200 |
| Homeowners insurance | $1,500 | $1,900 |
| Total escrow bills | $3,500 | $4,100 |
In this made-up example, the yearly bills went up by $600. The escrow amount rises to cover that, and if last year's account came up short, the servicer may also spread that shortage over at least 12 months. Your annual escrow statement shows your real numbers.
How do I read my escrow statement, step by step?
- Find your annual escrow account statement. Servicers must send it within 30 days of the end of the escrow year.
- Compare last year's tax and insurance payments with the bills you received from the county and your insurance company.
- Look for the shortage or surplus line and how the servicer plans to handle it.
- Check your monthly mortgage statement for any new fees or changes to mortgage insurance.
- Call your servicer with questions, and write down the date, the person's name and a reference number.
- Send a written notice of error if the numbers are wrong. Use the address your servicer lists for errors, which may be different from your payment address.
If your property's value on the county notice looks too high, my post on how to appeal your Maricopa County property valuation explains the process.
What if my servicer made a mistake?
The CFPB suggests calling first and asking for a corrected statement. If the problem isn't fixed, send a notice of error in writing. You can also send an information request. If your servicer didn't pay your taxes from escrow, the CFPB suggests sending a copy of the bill with your notice of error and contacting the tax office or insurance company. If you still have a problem, you can submit a complaint to the CFPB online or call (855) 411-2372. A HUD-approved housing counselor can also help, and the CFPB's "Find a Counselor" tool lists them.
Save this checklist for the next time your escrow statement arrives, and share it with a friend or neighbor whose mortgage payment just changed.
Want a second set of eyes on your home costs? Book a time to chat with me (30 minutes, 9 AM–7 PM Arizona time), or call or text me at 623-295-5770.
Frequently Asked Questions
Why did my mortgage payment go up if my rate didn't change?
With escrow, your payment includes property taxes and homeowners insurance. The CFPB says that when those bills change, your total monthly payment changes too.
What is an escrow shortage?
It means your escrow account is projected to run lower than needed to pay the coming year's tax and insurance bills, after the servicer's yearly escrow analysis.
Do I have to pay an escrow shortage all at once?
Not always. Under 12 CFR § 1024.17, a shortage of one month's escrow payment or more can only be collected by spreading it over at least 12 months, or the servicer can leave it as is.
What happens if my escrow account has extra money?
If the surplus is $50 or more and you're current on payments, the servicer must refund it within 30 days. Smaller amounts may be refunded or credited to next year.
How often does my servicer review my escrow account?
Once a year. The servicer must send an annual escrow account statement within 30 days of the end of the escrow year.
What is an escrow cushion?
It's extra money a servicer may keep for unexpected costs. Federal rules cap it at one-sixth of the estimated yearly escrow bills, unless your loan papers or state law set a lower limit.
When are property taxes due in Maricopa County?
The first half is due October 1 and becomes delinquent after November 1 at 5:00 p.m. The second half is due March 1 and becomes delinquent after May 1 at 5:00 p.m. (A.R.S. § 42-18052).
What should I do if I think my servicer made a mistake?
Call first and ask for a corrected statement. If it isn't fixed, send a written notice of error to the address your servicer lists for errors.
I'm a real estate agent, not a mortgage servicer, lender or housing counselor. I can't tell you whether your servicer figured your escrow correctly. Please ask your servicer for an explanation in writing, and talk with a HUD-approved housing counselor or a licensed attorney if you need help.
This article is general information, not legal, tax, or financial advice. Please talk with a licensed attorney, CPA, or lender about your situation.
About the author
Rosie Armenta | West USA Realty. Avondale (85392) is her home base, and she helps buyers and sellers across the West Valley in English and Spanish. Book a time to chat with me (30 minutes), or call or text 623-295-5770. Selling? Get a home value report.
Rosie Armenta | West USA Realty | Equal Housing Opportunity
Information was checked on November 10, 2026, from the CFPB pages "Why did my monthly mortgage payment go up or change?", "What is an escrow or impound account?" and "What should I do if I'm having problems with my escrow or impound account?", federal rule 12 CFR § 1024.17, and A.R.S. § 42-18052. Rules can change, so please confirm details with your mortgage servicer.