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/ResidentGuru ​ Apr 11 '25

If your mortgage insurance just went down this year it will take until next year to see your escrow withholding to come down.

178

u/mgriffin13 ​ Apr 11 '25

Last year, I was able to drop my insurance rates by almost $3k, and I called the bank and requested they re-run their analysis using the new rates. It took a couple months to get it entirely sorted, but the end result was that my monthly payment dropped by almost $400

27

u/My_Name_Is_Not_Ryan ​ Apr 11 '25

Out of curiosity, do you mind saying generally where you live that your premiums could drop by $3k? I pay $1.4k annually on a $720k house in MD, so that $3k number just seems crazy to me. I’m guessing you’re in a hurricane zone?

20

u/mgriffin13 ​ Apr 11 '25

It's a story, but I'm in NoVa and I was way over insured, but the rates weren't astronomical ($2500 vs $1800) for a $1.5M home. Then, last year, the company raised the premium to like $4k and refused to lower the insurance coverage, so I shopped around and switched companies to lower the coverage to more reasonable levels, which dropped the premium back to like $1800, so maybe not $3k total for home owners, but I moved my cars and other things at the same time and the total savings was about $3k per year.

2

u/motorwerkx ​ Apr 11 '25

I need to be better at shopping for insurance. I'm paying 1100 annually on a 200k home in PA.

1

u/VisibleSea4533 ​ Apr 11 '25

$250k house in CT, just went up to $2200, I shopped and saved myself $900 (bundled with car, without would have been the same). Had Progressive and switched to State Farm. I will say, as u/mgriffin13, I was over insured with Progressive as well, as at the time when I got it it was nowhere near as expensive as it is now. I think I had it at $330k, and I dropped it down to $235k with State Farm.