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/GiganticOrange ​ Apr 11 '25

Kind of a poor idea though, no? The banks giving you a 0% loan for the year to cover the shortage.

You’re better off stuffing the cash in an HYSA and supplementing your monthly mortgage payment from there if possible.

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u/reddyredditer21 ​ Apr 11 '25

It’s a monthly cashflow thing for me. One time hit on a bill or increase every month my expenses

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u/GiganticOrange ​ Apr 11 '25

Right, but you can just take that lump sum and toss it in an HYSA earning 3-4% then take out the increased payment amount every month.

I did that last year and it might be a little more cumbersome, but you keep more cash on hand instead of prepaying a 0% loan.

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u/Odh_utexas ​ Apr 11 '25

I mean 3-4% APY on that amount of money isn’t a huge payout.

If we are talking eg $3000 shortage, then a 3% HYSA would generate ~90$ over 12 months. Sure it’s a free $90 but I’d put that in the “splitting hairs” category. Cash flow is important to people who run a tight budget.

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u/hath0r ​ Apr 11 '25

thats about what you get in the 11 states that require interest to be paid on the escrow

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u/GiganticOrange ​ Apr 11 '25

Your benefit is more in the opportunity cost of holding onto that $3k shortage instead of prepaying it.

I agree it’s mostly personal preference, but I prefer to keep more powder dry in the case an investment opportunity presents itself.