AMARILLO, Texas (KAMR/KCIT) — Because of rising assessed property values, the bills paid out of your escrow account may increase substantially this year and your monthly escrow payment could be much higher next year.

Regional Manager of Supreme Lending Gary Meador said your escrow likely will go up if you’re on a fixed-rate loan.

“So, with property values going higher this year and taxes probably increasing this year, a majority of everyone is going to see a higher mortgage payment probably coming next year when they do escrows being reviewed,” said Meador.

And Amarillo National Bank is sending out notices regarding customers’ escrow accounts and that possible increase.

“This is just a generic courtesy letter sent out to all of our ANB customers that have a mortgage loan with an escrow account just informing them that there could be an increase in their taxes this year and they are able to put money towards their escrow amount to avoid a possible shortage when we do escrow analysis in late March,” said Vice President of Mortgage Loan Servicing at Amarillo National Bank Lissa Lanning.

Lanning said it’s important for them to send out letters like this so customers aren’t surprised when they do escrow analysis.

They don’t want customers to have a large shortage and large payment shock.

Both Lanning and Meador said there are many factors leading to the increases.

“I just think the market today, inflation. It has nothing to do with the lender, your mortgage principle part of your payment is not going to change if you have a fixed rate loan. The only thing that can change that is tax and insurance,” said Lanning.

“There has been a shortage of houses on the market and with that created a quite of a big demand this last two or three years for property, so we have seen a lot of dramatic increases. So with that tax rate based on the assessed or estimated value of the property, so with that, we are automatically going to see an increase in everybody’s property taxes,” added Meador.

Meador said one thing you can do to get ahead is to put back more each month to save for that increase or pay a little bit into your escrow account so that the increase will not be as dramatic.

“You are still going to have that crunch because there really is no way of getting around not paying it, but you could probably ease the dramatic cost of it going up by just paying into it because once they pay the taxes and your escrow account is going to be short, they are going to increase your house payment or your mortgage payment or your escrow payment to make up for that shortage,” said Meador.

Your escrow has to be one-twelfth of what your taxes and insurance are.