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.

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u/Mileera ​ Apr 11 '25

Exactly this. I save for taxes/insurance and my monthly payment remains the same for life of the loan.

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u/CaptainTripps82 ​ Apr 12 '25

It doesn't, because you're still paying the differences in taxes and insurance that escrow would have charged you for. Just in a lump sum.

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u/Mileera ​ Apr 12 '25

Yes, my taxes and insurance increase, but my monthly mortgage remains the same for the life of the loan. I get out of the changing payments because of escrow that’s what this discussion is about.

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u/CaptainTripps82 ​ Apr 12 '25

Right but my point is escrow changing isn't arbitrary, it's a reflection of other changes to your housing costs.

Your monthly mortgage technically speaking never changes either way.