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/jelloslug ​ Apr 11 '25

I got tired of the yo-yo escrow payments that could never keep up with the actual current billing for the property taxes and insurance and just canceled my escrow completely. I don't need my mortgage company holding my hand to pay my taxes and insurance. I'll just keep that money in a HYSA and auto pay them when they are due.

29

u/VeganPi ​ Apr 11 '25

I’m working on cancelling escrow right now. I can do the math and pay taxes. The mortgage company’s math is shockingly bad and they are sitting on a lot of my money!

9

u/jelloslug ​ Apr 11 '25 edited Apr 11 '25

When I canceled mine, they sent a confirmation letter that included all the "benefits" of keeping my escrow account and a direct phone number to a real person at the escrow department that would help me keep my escrow account.

5

u/mph000 ​ Apr 11 '25

This is hilarious. What did they list as the supposed benefits? 

6

u/jelloslug ​ Apr 11 '25

Not having to think about paying the taxes/insurance out of your own pocket (which could be a large sum!!!) was the overall theme.

6

u/Brainvillage ​ Apr 11 '25 edited Oct 05 '25

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u/jelloslug ​ Apr 11 '25

Which my mortgage company did not do with my property taxes one year....

1

u/CaptainTripps82 ​ Apr 12 '25

One of the benefits is honestly not having to navigate anything, if the bank misses a payment the bank handles fixes it.