Even if you have a fixed rate mortgage the monthly payment amount may fluctuate during the life of the loan. A fixed rate loan offers a fixed term (for example, 15 or 30 years) as well as a fixed interest rate, so the monthly amount for the payment of principal and interest will not change during the term of the mortgage. However, your monthly mortgage payment may also include interest, taxes and insurance. While your principal and interest amounts will not change, the amount needed for taxes and insurance may.

Once a year, on the anniversary date of the mortgage, Your lender will perform an escrow analysis to determine if current monthly deposits balances will provide sufficient funds to pay property taxes, hazard insurance and other bills when they come due. If your payment amounts have fluctuated, Your lender will have to adjust the amount needed in your escrow accounts to compensate for these changes.