As a homeowner, you’ve probably noticed a few extra pieces of mail arriving this time of year—property tax bills and escrow account updates. If you’re wondering whether you need to pay that bill yourself or why your mortgage payment just went up, you’re not alone. These are some of the most common questions I hear from clients every fall. Let’s break it down.

Why Did I Get a Tax Bill If My Mortgage Company Pays It?

If you have an escrow account, your mortgage servicer is already collecting money each month to cover your property taxes and homeowners insurance. When those bills come due, your servicer pays them directly on your behalf.

So why did the county mail you a tax bill? Simple: by law, they’re required to send you a copy—even if your lender is the one actually paying it. If you see that bill and panic that you owe it out of pocket, don’t worry. In most cases, your escrow account has it covered.

What Is an Escrow Account, Anyway?

Think of escrow like a savings account built into your mortgage payment. Each month, a portion of your payment goes into escrow to cover upcoming expenses like:

• Property taxes

• Homeowners insurance

Your mortgage servicer manages the account to make sure there’s enough money when those bills are due.

Why Did My Mortgage Payment Go Up?

Once a year—usually around November—your servicer does what’s called an escrow analysis. They review all the money collected and paid out to make sure the account balances correctly.

Here’s the catch: if your property taxes or homeowners insurance go up (and they often do), your escrow account may not have enough to cover the new costs. Your servicer will still pay the bill, but that can leave your account in the negative.

When that happens, you’ll usually have two options:

1. Pay the shortage in a one-time lump sum to bring the account current.

2. Spread the shortage out over your next 12 mortgage payments.

The second option is often easier, but it does mean your monthly mortgage payment increases for the year.

A Key Detail to Check on Your Tax Bill

If you live in South Carolina, make sure your bill reflects the 4% property tax rate—that’s the lower primary residence rate. If it shows 6%, that usually means the home is being taxed as an investment property or second home. In that case, give me a call so we can correct it.

The Bottom Line

Getting a tax bill in the mail doesn’t always mean you need to write a check. If you have an escrow account, your mortgage company is likely handling it. And if you see your mortgage payment rise, know that it’s often just the result of higher taxes or insurance—something most homeowners experience from time to time.

If you ever have questions about your escrow analysis, tax bill, or mortgage payment, I’m happy to take a look and point you in the right direction. You don’t have to figure it out alone.

✅ Looking for more homeownership tips? Reach out anytime—I’m here to help.