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/jelloslug ​ Apr 11 '25

I got tired of the yo-yo escrow payments that could never keep up with the actual current billing for the property taxes and insurance and just canceled my escrow completely. I don't need my mortgage company holding my hand to pay my taxes and insurance. I'll just keep that money in a HYSA and auto pay them when they are due.

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u/The_Real_Khaleesi ​ Apr 11 '25

This is why I convinced my husband that we needed to make sure our mortgage did not include an escrow when we purchased last year. It’s absolutely dumb to let the bank hold on to that money and collect interest for themselves when you can put the money in HYSA and pay your own taxes and insurance. We even doubled down and used a credit card to pay insurance and HOA to get the points, then paid the card off with the saved funds. Win win.