When you escrow your property taxes, you are giving your escrow company the legal right to raise your property tax withholding as much as they feel is needed to cover a future tax bill. Each year, your mortgage company estimates the amount of property tax it thinks you will need to pay for your next property tax bill. This estimate is added to your principal and interest payment each month. When your mortgage company thinks property taxes are going up, they will raise your payment to cover the anticipated increase.
Protesting does not immediately lower your mortgage payment. Instead, it aims to lower the amount your mortgage company has to pay the county when it pays your bill. If we lower your tax bill and your mortgage company ends up paying less than they expected, they may issue you a refund and possibly lower your mortgage payment next year.
This is why some homeowners prefer NOT to escrow their property taxes with their mortgage company, and instead pay the property tax bill themselves each year. If you choose not to escrow, it’s VERY important to save enough money each month to pay your property tax bill. The consequences of not paying your property tax bill in full are very high.