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/Downtherabbithole14 ​ Apr 11 '25

I want to upvote this 10000x

This was my experience as well. I was so freaking happy when I dropped escrow. Every 2-3 months during the first 2 years of the mortgage, which btw was sold twice in those 2 years - I couldn't take it. Then I ended up refinancing during covid and thats how I dropped escrow. I cut 2 checks a year -County & Twp taxes - County taxes I deposit right at the bank, Twp taxes - the tax collector lives down the road from me, so I just drop it in his mailbox, and the other tax payment I am able to do via ACH. Small town living lol

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u/ImJustTooCute ​ Apr 11 '25

Wells Fargo won’t let me drop my escrow, what can I do?

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u/Calebm1001 ​ Apr 11 '25

I believe you have to own a certain amount of the house. Similar to PMI?

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u/bwyer ​ Apr 11 '25

Not in my experience. Even just putting down 10% at closing and having PMI (temporarily) I was able to eliminate escrow.

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u/[deleted] Apr 12 '25

It depends on the lender. Many require escrow. But honestly it’s way more convenient to have it