If your home is mortgaged, your lender will likely handle the payment from your escrow account, eliminating the need to gather the specified amount separately, as you've been setting aside funds through your monthly mortgage payment.
The monthly contribution to your escrow account is determined by previous tax years. If like many, your property value increased significantly during the reassessment last year, it implies a rise in property taxes.
So, what does this entail for you?
If your lender has been collecting an amount based on the 2022 tax figure, there might be a deficit in your escrow account. Consequently, your monthly mortgage payment might increase in the coming months to address this discrepancy. Lenders usually provide the option to either raise your monthly payment or pay a lu
mp sum to bridge the gap.
Each lender may handle this differently, and your situation may remain largely unchanged. However, it's advisable to take this opportunity to review your property taxes and loan details to avoid surprises in the future.