See exactly how a tax or insurance increase changes your monthly mortgage payment — and whether to pay the shortage up front or spread it over 12 months.
For educational purposes only • Not a commitment to lend
Florida Property Taxes
Tax bills are mailed around November 1. Lenders typically pay in November to capture the 4% early-payment discount. Due date is March 31. Florida offers a sliding discount for early payment:
Texas Property Taxes
Tax bills are mailed in October. Due by January 31 of the following year. Taxes become delinquent on February 1 and begin accruing penalties and interest. Texas has no early-payment discount. Tax rates vary significantly by county and school district — some of the highest in the nation.
New Jersey Property Taxes
Taxes are due quarterly: February 1, May 1, August 1, and November 1. Despite the quarterly schedule, your lender still collects 1/12 of the annual amount each month and disburses to the municipality quarterly. The first two quarters are based on the prior year's tax; the final two reflect the new assessment.
Note: NJ is one of 8 states that require lenders to pay interest on escrow account balances.
Principal & Interest only — This is the fixed portion of your payment that does not change when escrow adjusts. Find this on your mortgage statement.
Find this on your most recent mortgage statement — Look for "Escrow Balance" or "Reserve Balance." This is what your servicer currently holds to pay upcoming taxes and insurance.
An escrow shortage isn't a penalty — it's your lender catching up to the new cost. Understanding the math gives you the power to choose how to handle it.
Click below to talk through your escrow analysis with a professional
Early Payment Discount Schedule:
Your mortgage servicer performs an annual escrow analysis to make sure your account has enough funds to cover upcoming tax and insurance payments.
This calculator estimates what your new payment will look like after an escrow analysis triggered by a tax or insurance increase. Your actual escrow statement may differ.
Todd Hanley, RICP®, CMA™ | Senior Loan Officer | NMLS #1013665 | Todd Hanley Mortgage Team powered by United Direct Lending | NMLS #1749719 | 5550 Glades Rd, Suite 500, Boca Raton, FL 33431 | Licensed in FL, TX, NJ | Equal Housing Opportunity
Estimates only • Not an offer or commitment to lend • For educational purposes
