I paid my escrow shortage, why aren’t my payments remaining the same?

The escrow shortage you paid covers last year, not future costs. Paying the shortage brings your escrow account current but it does not change upcoming property tax or insurance costs.

Your escrow payment is recalculated using updated bills. If taxes or insurance increased, your new monthly escrow payment will reflect those higher projected amounts.

Federal rules require a minimum escrow cushion. Even after a shortage is paid, your payment may increase to maintain the required reserve in your escrow account. The increase is not related to your loan terms. Your interest rate and principal payment did not change. The adjustment is due to taxes or insurance.