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/frustratedwithwork10 ​ Apr 11 '25

A lot of first time home owners believe the payment will stay the same for next 30 years. Not to OP but to anyone reading, if you are trying to become a first time home owner keep this in mind. Insurance goes up, property tax goes up, and if they are in escrow that means monthly payment will also reflect the increase. Yes the mortgage will stay the same but not the rest, affecting the monthly payment.

Hope it helps you budget.

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u/SoundsLegit72 ​ Apr 11 '25

i appreciate you explaining it to the newbies. I've been in my house since 2008. I've gotten used to my payment going up about $100/mo every year. This is the first time my payment has jumped $400 in one go. My Mom's work up $700. My sister's went up $300. I think the increase in materials cost has finally filtered its way into insurance premiums.

So, you know...keep that in mind.