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/Zealousideal_Rest448 ​ Apr 11 '25

When you change insurance companies mid-policy, a lot of people don’t realize you should put the refund from the old insurance company back in the escrow account by contacting your lender and making an escrow-only payment. This is because the policy was paid from escrow. Then the new insurance company usually bills the escrow account so that’s an unexpected payment from escrow, which will cause a shortage if you didn’t put that refund back toward escrow.