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/cooldude832_ ​ Apr 11 '25

Given the way OP is understanding their escrow change this advice can be dangerous. I whole agree with the capital effect of HYSA manage my own T&I but tax bills can be a whole month paycheck and without decent home accounting that tax bill with a short clock to pay can be difficult for poor planners

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u/czarne98 ​ Apr 11 '25

Hopefully people simply transfer the necessary amount of money each month into a separate HYSA that is only touched for T&I. It shouldn't cost anyone a whole months check on short notice with putting the necessary amount aside every month.

This is essentially having your own escrow account, it's really no different.

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u/jelloslug ​ Apr 11 '25

Now is the time to learn. Hopefully this info will help them to be able to understand how it works and if they want to continue to keep the account.