How Your Mortgage & Property Taxes Work Together in DFW—And How to Keep Both in Check
For most North Texas homeowners, the monthly mortgage payment covers more than just principal and interest—it also includes an escrow account that pays property taxes and insurance.
In high-growth markets like Dallas, Fort Worth, Plano, Frisco, and McKinney, understanding how property taxes affect your mortgage can help you avoid surprises and keep your payments consistent.
As a Realtor and Loan Originator, PJ Zaji works with buyers and homeowners across the DFW metroplex to ensure they understand this connection—and know how to protect their biggest investment.
How Mortgage Escrows & Property Taxes Interact
● Your mortgage lender often collects extra each month through escrow to cover next year’s taxes.
● If your property’s assessed value increases (or tax rates rise), the escrow account may lack sufficient funds.
● The result? A mortgage “escrow shortage” and a higher monthly payment as the lender recovers the shortfall.
● By keeping your property taxes in check, or lowering them through protesting, you can avoid sudden payment hikes.
For homeowners in the Dallas–Fort Worth area, where property values have appreciated in recent years, keeping your taxable value accurate is one of the smartest ways to manage long- term affordability.
Recent Texas Tax Reforms Homeowners Should Know
Texas recently approved major amendments aimed at lowering the property-tax burden and improving fairness across all counties, including Collin, Denton, and Tarrant. Two of the most impactful changes are:
● Prop 13: Increases the homestead exemption for school-district taxes from $100,000 to $140,000 of market value, reducing taxable bases for many homeowners.
● Prop 11: Expands exemption benefits for seniors and disabled homeowners, providing additional relief for those already eligible.
These reforms provide meaningful savings, but they don’t replace the need to review and protest your property assessment each year. Every appraisal cycle stands alone, and mass- valuation systems often overestimate property values, especially in fast-growing DFW communities.
Partnering With Property Tax Experts
Protesting property taxes can be complex. That’s why PJ partners with Gill, Denson & Company, a property tax protest company helping property owners statewide.
They handle:
● Data and market-comparable analysis
● Filing protest paperwork
● Representing you in hearings
● Fee-only-if-you-save model
Exclusive Offer for PJ Zaji Clients
When you sign up with Gill, Denson & Company using code ZAJI, you’ll receive a discounted contingency fee of 25% of your actual tax savings.
Start reducing your tax burden and protecting your mortgage payment today.
Sign up now: https://signup.gilldenson.com/
Final Thoughts
When your mortgage lender says “escrow shortage,” the root cause often starts with the property tax bill. By working with a trusted mortgage advisor and a property tax specialist, you can stay ahead of increases, protect your payment, and keep your home investment working for you.
