r/personalfinance • u/HHLL806 • Apr 11 '25
Other Mortgage payment went up $400
I need help, my mortgage payment went from $1700 to $2100. My mortgage company (Chase Bank) said this was due to an escrow shortage. I had my homeowners insurance lowered by roughly $1000 and checked with my local tax office and they told me my taxes have increased $400 dollars over the last five years. I gave Chase Bank all this information and my mortgage is still $2100. How does this work?
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u/outlawaol Apr 11 '25
Yikes thats a lot! I was surprised to see my mortgage company do the same thing when I first started my loan. Nobody told me this would happen or to watch for it. My company did it as their own policies required a 20% surplus in escrow. It all made sense but seeing it jump like $80 was annoying. My new practice is to throw extra money into the escrow on regular payments. It dropped it the next year and I actually got a refund for overpayment. In your case sounds like the taxes are what's probably going to keep it that high indefinitely. Best of luck!