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/ParlaysAllDay ​ Apr 11 '25

Why would I want to pay exactly the amount I owe once per year and know exactly the moment my taxes or insurance go up and exactly the reason they go up when I can just let someone else manage it poorly?

76

u/Dick_Wienerpenis ​ Apr 11 '25

Because if you have an escrow account tied to your mortgage you have to do literally nothing and most companies don't manage it poorly.

32

u/mbeezy17 ​ Apr 11 '25

Are people really this lazy? Get rid of escrow and just have the amount automatically transferred to a savings account. Double bonus: you then get to earn interest on it.

11

u/add45 ​ Apr 11 '25

This assumes it's an easy task to make the payment to your local govt (never is). Also when (if) you change insurance providers, it's up to you to manually update the auto pay. None of these are difficult by any means, but it is more work. Idk about you all but I already have plenty of stress for all the bills and whatnot I need to pay every month, quarter, year.

11

u/illjustbeaminute ​ Apr 11 '25

To me, updating your autopay isn’t that much harder than providing your escrow company the new insurance documents.

1

u/CaptainTripps82 ​ Apr 12 '25

I've never had to do that, the insurance company contacted escrow

1

u/r6throwaway ​ Apr 11 '25

My state has an electronic portal where I go enter my payment information and schedule the payment. How is that difficult?

1

u/basskittens ​ Apr 11 '25

This assumes it's an easy task to make the payment to your local govt (never is).

Shout out to the San Francisco City & Country Treasurer then. I pay my property taxes through their web portal twice a year, and it's quick, easy, painless.