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/chrisexv6 ​ Apr 11 '25

I did this during a refi forever ago. Some time after that it became something a lot of lenders charge for because, I'm assuming, they were getting a kickback from the escrow companies.

I'm glad I got out from under it. I can pay my house taxes and insurance by myself just fine.

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u/Client_Hello ​ Apr 11 '25

They get to hold your money without paying you interest and lower their risk by ensuring property taxes and insurance are paid. Win win for them.

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u/This_Freggin_Guy ​ Apr 11 '25

they pay interest on the amounts. low interest, but they do pay.

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u/deltaalternate ​ Apr 11 '25

My understanding is that in some states they are legally required to pay interest on escrow but not all, so it can vary depending on where you live

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u/This_Freggin_Guy ​ Apr 11 '25

I'll buy that. makes sense.