Why did my mortgage escrow payment go up even though my loan has a fixed rate?

A fixed-rate loan locks your principal and interest, but the escrow portion of your payment covers property taxes and homeowners insurance, which change every year. When your county reassesses your home or raises tax rates, or when your insurer increases your premium, the lender collects more each month to cover the higher bills. Lenders also run an annual escrow analysis and may add a shortage charge if last year's account ran low, plus a cushion for next year. You will receive an escrow statement explaining the change. To reduce future jumps, shop your homeowners insurance annually and appeal your property tax assessment if it looks too high.