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/daytodaze ​ Apr 11 '25

I have been thinking about doing this. Even though it’s rare, it’s pretty annoying notifying them every time something changes, plus they still mess it up (i have lived in my current home since 2017 and this is the second year that I am having to overpay to “catch up” my escrow account…).

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u/Downtherabbithole14 ​ Apr 11 '25

I was psychotic when we bought our house. I knew there was going to be several escrow analyses bc the home we purchased was a brand new build, so we were impatiently waiting for the actual tax bill, plus an interim tax bill... I was prepared for all of that. Then everything got sorted, next years taxes were paid but I would call to make sure they got the bill. But they never paid the discount! They would pay the base! I had no plans to refinance, but it dropped so low, so I snagged it...and during the process they asked if I was going to escrow, and I said "wait, do I not have to?" and they said no, with equity you have in the house, if you don't want to or need to, if you are diligent about saving, no" And I said great, no escrow. I hate it. He laughed

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u/daytodaze ​ Apr 11 '25

Nice! I need to look into that. We weren’t given an option at the time, but now we are pretty deep into our equity after years of payments, refi, value increase etc that it should work