Why your 'fixed' mortgage payment keeps going up

Fly View Productions | E+ | As many homebuyers discover, getting a fixed-rate mortgage doesn't necessarily mean your monthly payment will remain the same. For many homeowners, in addition to principal and interest payments each month, their mortgage payment includes amounts that go into an escrow account. That account then pays out homeowners insurance premiums and property taxes , as well as mortgage insurance if the borrower is required to carry it. This year, about 65% of escrow accounts are projected to be short because of recent jumps in those costs, according to Cotality , a property data and analytics firm. The estimated average shortage is $2,157. While it's not uncommon for escrow costs to be adjusted up or down each year, they have increased by roughly 45% since 2019, according to Cotality. In some states, it's been much higher: For example, homeowners in Florida and Colorado have seen jumps of 70% and 77%, respectively. Cumulative inflation from May 2019 to April 2025 was about 30%, based on the consumer price index .