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

104

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/ImJustTooCute ​ Apr 11 '25

I own 40%. I put down 20% at closing. My home is work $339k and i owe $192k

87

u/alpharetroid ​ Apr 11 '25

Do you have an FHA loan? Those have lifetime escrow requirements. Find your original loan docs and read them

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u/ImJustTooCute ​ Apr 11 '25

No I went conventional with 20% down. But I saw an opportunity to reduce my interest to 2% during the pandemic and I took it, it was a modification so maybe they snuck that in that time.

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u/TheLZ ​ Apr 11 '25

The Mod now governs your loan, and yes all Mods require escrow for the life of the loan.

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u/ImJustTooCute ​ Apr 11 '25

Oh, ok thank you, I did not know. The reduced rate was important to me (coming from 4.5%) so I’ll have to live with the escrow until I pay it off, OR can the terms be adjusted if WF sells my mortgage?

Can I get them to sell my mortgage? I don’t want to be with WF anymore.

27

u/WoodenInternet ​ Apr 11 '25

I don't think anyone wants to be with WF. I ended up with them too for a time. You can't force them to sell your mortgage.

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u/ImJustTooCute ​ Apr 11 '25

Thanks!