Is it normal for your mortgage payment to increase every year?

I understand property taxes and home owners insurance prices fluctuate. But my payments have increased drastically. The first year my payments were about $1012. The second year, it went up to $1230. This year (3rd year) I got a letter in the mail recently that my escrow will be in deficiency, and I need to pay $990 or have that amount divided into my monthly payments, causing the mortgage to go up again.

Where is the money going? My insurance only went up by $17. I checked the property tax statements, there was no increase this year. I have paid all mortgage payments on time.

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